gotafe 2012 annual report

2012 ANNUAL REPORT

Contents

IntroductIon

2 About GOTAFE

3 Chairman Report

4 ChiefExecutiveOfficerReport

our organIsatIon

5 2012 Highlights

5 Student and Customer 8 Working in Partnership12 Infrastructure13 Awards15 People18 Sustainability

19 2012 Board Members

22 ExecutiveManagementTeam

coMPLIancE InForMatIon

25 Statutory Requirements & Statements

29 Victorian Auditor General’s Report

31 Statement of Performance

79 Disclosure Index

FInancIaLs

28 Summary of Financial Results

34 Victorian Auditor General’s Report

36 Certifications

37 ComprehensiveOperatingStatement

38 Balance Sheet

39 Statement of Changes in Equity

40 Cash Flow Statement

41 Notes to the Financial Statements

41 Note1:Statementofsignificantaccountingpolicies51 Note2:Incomefromtransactions52 Note3:Expensesfromtransactions54 Note4:Othereconomicflowsincludedinnetresult54 Note 5: Cash and cash equivalents55 Note 6: Receivables56 Note7:Otherfinancialassets56 Note 8: Inventories56 Note 9: Property, plant and equipment58 Note 10: Biological Assets59 Note11:InvestmentProperties59 Note12:Othernon-financialassets60 Note 13: Payables61 Note 14: Provisions62 Note 15: Equity63 Note16:Cashflowinformation64 Note 17: Commitments65 Note 18: Leased assets65 Note19:ContingentassetsandcontingentLiabilities65 Note 20: Economic dependency66 Note 21: Subsequent events66 Note22:Remunerationofauditors67 Note23:Superannuation68 Note 24: Key management personnel disclosures71 Note25:Relatedparties72 Note26:Institutedetails72 Note 27: Financial instruments78 Note28:Ex-gratiapayments

The financial report was authorised for issue by the Board members on 22nd March, 2013. The Goulburn Ovens Institute of TAFE has the power to amend and reissue the financial report.

2 | gotaFE 2012 annuaL rEPort

IntroductIon

About GOTAFE

goulburn ovens Institute of taFE (gotaFE) is the largest tertiary educational provider in northern Victoria (Hume region) delivering annually in excess of six million student contact Hours (scHs) across 38 industry sub-sectors to more than 20,000 students. gotaFE employs more than 400 staff located in 15 locations, and achieves an annual turnover in excess of $70 million.

The region covered by GOTAFE includes 11 localgovernmentauthoritiesandservicesthevocationaleducationandtrainingneedsofmore than 220,000 Victorians. Students live inlocationsrangingfromWallaninthesouthtoKyabraminthewest,Mansfieldintheeast,and Cobram to Rutherglen in the north.

GOTAFE has a rich history of providing technical,vocationalandfurthereducationto the region. The establishment of GOTAFE tookeffectupontheamalgamationofWangarattaInstituteofTAFEandGoulburnValleyInstituteofTAFEonOctober1,1996.ThisfollowedaCommitteeofReviewofTAFEservices in North East Victoria, headed by Dr Tom Kennedy.

GoulburnOvensInstituteofTAFEwasauthorisedunderSection23oftheVocational Education and Training Act 1990 and its Board establishedunderSection24oftheAct.ItspowersanddutiesareprimarilyestablishedinitsConstitution,theEducation Training and Reform Act 2006, Tertiary Education Act 2003 and Financial Management Act 1994. The responsible Minister during 2012 was the Hon. Peter Hall, MLC, Minister for Higher EducationandSkills.

TheprincipalobjectiveofGOTAFE,withinthecontextofNationalandVictorianStateGovernment policies and management frameworks,isarticulatedinitsstrategicpurpose:

To deliver quality vocational training and tertiary education that responds to the needs of industry, enterprises, communities and individuals in the regions GOTAFE serves.

The strength of GOTAFE lies with its experienced,skilledandinnovativestaffwho provide training, skills development and other services to students, industry clients and the wider community through:

Ì Innovative,customisedandqualityassured training programs and products

Ì Flexibleeducationandtrainingdeliverymethodologies; and

Ì Acommitmenttoconsultation,partnershipsandcustomersatisfaction.

IntroductIon | 3

Chairman Report

on behalf of gotaFE, I am very pleased to present the Institute’s 2012 annual report which highlights how much can be achieved through outstanding leadership, flexibility, hard work and genuine creativity.

This report demonstrates that in 2012 GOTAFEhasbeensuccessfulinmeetingits Vision and Values as set out in the Institute’sStrategicPlan.

TheimplementationofGovernmentpolicyand demand driven funding including the substantialimpactsofbudgetfundingandthedevelopmentoftheTransitionPlanhaveprovidedtheInstitutewithauniqueopportunitytounleashitspotentialandemergeasanenterprisingorganisation,turningcreativeideasintobusinessopportunities.

AtalllevelsoftheInstituteeverypersonhas applied an extraordinary level of resilience,dedicationandcommitmentto ensure that the GOTAFE Strategic Plan continuestoberelevantandensureitssustainability into the future.

LedbytheGOTAFEBoard,ChiefExecutiveOfficerPaulCulpanandtheExecutiveManagementTeam,significantstructuralchanges and a systems review were undertaken which have enabled an extraordinary review of, and response to theInstitute’sculture,opportunitiesforinnovationandanunderstandingandtheimplementationofGovernmentpolicy.

Theleadershipandmanagementrevolutionwithin GOTAFE has been based on three key fundamental principles –courage andcommitment,vision,innovationand

creativityandpromotingandachievingsustainable growth.

Funding cuts announced in May 2012, enabled the Board and Management to thoroughly review the relevance and delivery of GOTAFE programs and services andfacilitatedgreateropportunitiesforstafftobefarmoreflexibleandentrepreneurial.

Strong growth in student contact hours andimprovedsatisfactioninemployerandstudentoutcomesurveysreflectthesuccessofthesechangesandinnovationacrosstheInstitute.

OurpartnershipsandrelationshipswithtertiaryeducationprovidersarestronglyembeddedintheInstituteandhaveopeneduptheopportunitiesfortheInstitutetowork with private providers directly or through a brokerage model.

Thefinancialresultfor2012isanexcellentoneandhasmitigatedthesustainabilityrisksoftheInstitute,aswellasenablingittoestablishfinancialreservestomeetsomeofthemanychallengesandopportunitiesin the future.

TheInstituteisafarmoreefficientmoderndayorganisation,capableofmeetingtheeverincreasingcompetitionanddemandsofvocationaleducationandtrainingandtertiaryeducationprovision.

Whilsttherearefurtherlegislativechangesaffectingitsgovernancestructuretobe implemented, the GOTAFE Board is confidentthattheInstitutewillmeetthedemands, challenges and commitment to its students and business regionally and beyondforalongtimetocome.

I acknowledge and thank my fellow Board Members for their business insight and leadership and their robust debate, diligence and support throughout 2012.

ThankyoutoChiefExecutiveOfficerPaulCulpan for his leadership and drive within GOTAFE and beyond in the broader TAFE Sector, and for his absolute commitment toandfocusontheInstituteachievingthehighest standards of quality and course deliverythroughrelevantandefficientsystemsandcreativeandinnovativestaff.

On behalf of the Board, I record its appreciationfortheleadership,hardworkandwillingnessofManagementandStafftomeetthecriticalchallengesandculturalchanges required to keep pace within our current environment.

TheInstitutehasreceivedandismostgrateful for the advice, support and input received from business and industry partners and our local and regional communities.

TheGOTAFEBoardextendsitsappreciationto the Honourable Peter Hall Minister for HigherEducationandSkills,thestaffoftheDepartmentofEducationandEarlyChildhood Development and the Higher EducationandSkillsGroupfortheiradvice,guidanceandco-operationthroughout2012.

MichaelH.TehanChair of the Board January 2013


Chief Executive Officer Report

In a year of significant change for the taFE sector in Victoria, gotaFE was very successful in achieving strong growth in student contact hours, excellent financial results and high employer and student satisfaction with 2012 reports indicating 94.7% of employers were satisfied with the training their apprentices or trainees are receiving from gotaFE and 97% of learners would recommend the training they received from gotaFE to others.

This overall excellent performance was drivenbytheextraordinaryeffortsandcommitmentofGOTAFE’sBoardandstaffaswellasthesuccessofstrategiesimplemented over the last four years. The positioningofthestudentatthecentreofallstrategicandoperationalthinking,the development of commercial teaching centres focussed on industry sectors, strengtheningourfocusoneducationquality, the development of strategic partnershipswithUniversitiesandschoolsandanunderpinningstaffculturebasedonresponsiveness,creativity,collaboration,excellence, accountability, integrity and respect has led to this outstanding result.

TheseinitiativescombinedwithestablishedpartnershipswithfiveUniversitiesandoversixtysecondaryschoolspositionGOTAFEasaleadingeducationproviderinregionalVictoria.

In2013theInstitutewillcontinuetogo from strength to strength with the implementationofanewStudentManagement System designed to enhance the student customer service experience, strengtheningofoure-Learningeducationmodels with more courses available online and an increased focus and development of interstateandinternationalprograms.

I would like to acknowledge the contributionmadebyourexecutive,managementandstaffin2012whohaveworkedaboveandbeyondexpectationstoachieve the 2012 results in an environment ofsignificantuncertainty.

Iwouldalsoliketoexpressmyappreciationfor the support and guidance provided by Mr Michael Tehan, Chair of the GOTAFE Board and all Board Directors over the past year with regard to excellent governance of theInstituteensuringthesuccessthathasbeen achieved in 2012.

In closing, GOTAFE has demonstrated in the past year that it can be successful under the new commercial policy environment andisverywellpositionedtocontinueitssuccess into future years.

Paul CulpanCEO

January 2013

our organIsatIon | 5

our organIsatIon

2012 Highlights

the highlights section of gotaFE’s annual report provides a snapshot of the Institute’s 2012 activities and is summarised under the following headings:

› student and customer

› Working in Partnership

› Infrastructure

› awards

› People

› sustainability

student and customer

student outcomes survey

A total of 326 graduates responded to the Student Outcomes Survey conducted by the SocialResearchCentreonbehalfofNationalCentreforVocationalEducationResearch(NCVER).TheoutcomesforGOTAFEarestrongerthantheaverageforTAFEinstitutesinVictoriaandVETprovidersnationally.

2012 Student Outcomes Survey (of 2011 graduates)

Key Indicators 2012 GOTAFE

2012 TAFE VIC

2012 All RTOs

Graduates achieved or partly achieved their main reason for undertaking training 92.1% 84.9% 84.8%

Graduatessatisfiedwithteaching 92.1% 90.3% 91.5%

Graduatessatisfiedwithassessment 94.0% 89.3% 90.2%

Graduates would recommend the training they undertook to others 97.0% 93.5% n/a

In second semester 2012 GOTAFE conducted surveys of employers and selected student groups to obtain valuable client feedback and meet ASQA Quality Indicator requirements.

2012 Employer Satisfaction Survey & Learner Engagement Survey

Employers

Questions 2012 Survey

Overall,wearesatisfiedwiththetraining 94.7%

Wewouldrecommendthetrainingorganisationtoothers 93.5%

We would recommend the training to others 93.8%

Learners

Questions 2012 Survey

Overall,Iamsatisfiedwiththetraining 89.5%

I would recommend the training to others 90.3%

Iwouldrecommendthetrainingorganisationtoothers 89.7%


studEnt

Inaugural beauty therapy graduates

ThefirstgroupofstudentstoundertaketheCertificateIVinBeautyTherapygraduatedin 2012. All graduates, including Student of the Year, Claire Haigh, are employed in the beauty industry.

student contact hours for ncdEa increase by 16 per cent

TheNationalCentreforDairyEducationAustralia (NCDEA) farming group increased the number of government funded student contact hours (SCH) across Victoria from 430,000 in 2011 to 500,000 in 2012.

new training package implemented by ncdEa

TheNCDEAundertooksignificantdevelopmentactivitiestointroduceanewtraining package, Agriculture, Horticulture and Conservation and Land Management.

The package was adopted by the NCDEA afteranextensivereviewofthecurrentresourceswasundertakenandvalidationwas received by an industry nominated panel.

Thepanelconsistedofnationaldairyindustryrepresentativeswho,forthefirsttimeconductedthevalidationviawebinars.

Virtual business program extended to all campuses

The Virtual Enterprise (VE) program was initiallyimplementedatGOTAFE’sBenallaCampus and was extended across all four campuses to include Shepparton, Seymour andWangaratta.

The program provides students with the opportunity to learn skills in a variety ofbusinessareasincludingmarketing,administrationandstaffmanagement.Students are able to spend virtual money in a simulated business environment, giving them business experience without the implicationsofusingrealmoney.

scholarships make a career in logistics a possibility for disadvantaged students

TwostudentswererecipientsofaLogisticsScholarship that was introduced in 2012 to support disadvantaged students. The scholarships were made possible through theMickYoungFoundationandtheTransport&LogisticsIndustrySkillsCouncil.

‘Block release’ delivery style drives enrolment figures

A‘blockrelease’deliverystyleinstigatedbythe electrical department has contributed toalargerthanexpectedenrolmentfigureof70firstyearapprentices,30morestudents than the target. This delivery methodenablesapprenticestostudyfull-timebutundertaketheoff-the-jobpartofanapprenticeshipfora‘block’oftime,usually one week in every six weeks.

This structure was welcomed by employees and employers located in Melbourne as there is a limited number of metropolitan TAFE’sofferingthisdeliverystyle.

Blended delivery creates more flexibility for animal sciences students

All courses within the Animal Sciences learningareaweretransitionedtoablended learning model with an emphasis on e-learning and workplace training, supportingthedepartment’sfocusondeveloping a more sustainable business model.

The blended delivery model will allow greater accessibility to the wide geographical spread of Animal Sciences students,andgreaterflexibilityinwhen,where and how students study. These developmentsformpartofthetransitionprocess to expand the capability of the Animal Sciences team across Victoria, interstate and overseas.


custoMEr

gotaFE in top ten providers of Worksafe courses

GOTAFE became one of the top ten providers in Victoria to deliver WorkSafe approved courses for health and safety representatives.GOTAFEsatisfiedtheWorkSafeaccreditationcriteriaanddelivered the training to more than 500 students during 2012.

Pre-employment course encourages entry into meat processing industry

Apre-employmentprogramwasinitiatedwithWodongaRenderingafteraconsultativeprocessbetweentheabattoirs,SurewaysandWorkwaysidentifiedadownturn in workers within the meat processing industry. The pre-employment program provides an entry point into the meat processing industry and has been well received by both employer and employee.

Five courses have been delivered since the program was implemented in July andparticipantsarenowemployedintheindustry.

Industry clients commence manufacturing certificate

Employees from Peninsula Health in Frankston and various engineering companiescommencedtheVocationalGraduateCertificateinCompetitiveManufacturing, an eighteen month course, with GOTAFE. The course is conducted on line via Moodle and virtual classrooms using Adobe Connect, enabling the participationofinterstateandinternationalstudents.

sugar australia benefit from customised training model

GOTAFE’sFoodIndustryCentre(FIC),continuedtoprovidesignificantprograms to the broader food processing industry across the state. This is evident inthedeliveryandcompletionofacomprehensive award-linked training program for Sugar Australia, with 47 CertificateIIIinFoodProcessingTraineesinvolved in the program across all sugar productionareas.

This program was delivered on-site at YarravilletoproductionstaffbytheFICfrom both the Metropolitan (Werribee) and Shepparton campuses.

The success of these programs has led to thecommencementofCertificateIVinFood Processing delivery at both Yarraville and the Sugar Australia site at Croydon.

cow nutrition programs a success

Sixty dairy service providers from Victoria, Tasmania and South Australia, including farm consultants, veterinarians and feed companyrepresentativesattendedthreeintroductoryleveldairycownutritionprograms that were conducted throughout Victoria by a team of NCDEA and DepartmentofPrimaryIndustriesstaff.

delivery of new dairy programs in northern Victoria

IncollaborationwithMurrayDairyandthe Department of Primary Industry (DPI) Victoria, NCDEA Northern Victoria delivered seven new calf-rearing programs, In Chargeanindustryfinanceprogram,threeleadership courses: LeadIn; Women in Dairy and a course for young farmers, Dairy for the Future in a Changing Environment.

ncdEa course prepares participants for regional leadership roles

NCDEAcompletedtwonationalcontractson behalf of Dairy Australia (DA).

Twelve Alliance Partner trainers and assessors were trained to deliver the introductory leadership skills program, LeadIn. Through the support of Dairy Australia the LeadIn program develops farmers and service providers leadership skills for local and regional leadership roles. Shepparton and Terang were the firstregionalareastoreceivetheLeadIntraining. Bonlac Supply Company (BSC), a milkcollectionagency,utilisedtheLeadInprogram to train nominated farmers for theirsupplierrepresentativeprogram.

Developing Dairy Leaders Program (DDLP) is another leadership program implemented by NCDEA that focussed on policy and advocacy for State-wide dairy leaders andwassuccessfullydelivered,attractingparticipantsfromthroughoutAustraliaviaacompetitiveprocessmanagedbyDAandthe Australian Dairy Farmers.


Working in Partnership

unIVErsIty PartnErsHIPs

GOTAFE has become the leading provider oftertiaryeducationprogramsinNorthEast Victoria through a brokerage model withrelevantUniversities.UniversitieswithspecificarticulationarrangementswithGOTAFE are: La Trobe, Ballarat, Deakin, Monash, Melbourne and Charles Sturt Universities.

These partnerships improve higher educationaccessandattainmentlevelsforregional students, as well as providing the opportunityforGOTAFEteachingstafftodevelop the capacity to deliver auspiced University degree programs.

Inadditiontothis,severaltargetedprograms aimed at increasing pathway opportunitiesforstudentswerefurtherdeveloped in 2012:

Ì RegionalGatewaysisacollaborativeprogram with the University of Melbourne, Dookie Campus to providegreaterflexibilityandaccessto University of Melbourne degree programs.

Ì GOTAFE and the University of Ballarat (UB)havejoinedforcestoofferthenew Bachelor of Applied Management Studies to people within the Goulburn Valley interested in gaining a leadership qualification,andwillfurtherexpandthis partnership with UB in 2013 into other study areas.

Ì The Deakin at your Doorstep program offersGOTAFEandotherregionalTAFEstudents a pathway to university, where they undertake units in their target universitydegreeswhilecompletingtheir Diplomas.

Ì GOTAFE is one of seven partners in the Dual Sector Partnership (DSP) project, keyinitiativesundertakenin2012were:

Ì ThirtyGOTAFEstaffundertooktheGraduateCertificateinEducation

(TertiaryTeaching)(GCETT).

Ì Partnership Business Systems – establishes DSP business connectivityandidentifiesandpurchaseseducationprogramdelivery technologies to build seamlessinteractionbetweenpartnerinstitutionsandtheiractivitiesinadual-sectorenvironmenttomaximiseefficiencyand responsiveness.

deakin at your doorstep students conduct environmental research for local businesses

Students enrolled in the Deakin at your Doorstep Associate Degree at GOTAFE conducted two community sustainability investigationsaspartofWorkandtheSustainable Society. The project required studentsresearchalocalorganisationandproduceareportontheirfindings.Onegroupofstudentschoseacaféandinvestigateditselectricityuseandoncompletionoftheprojectprovidedsuggestionstoreducetheamount of electricity used and therefore the financialandenvironmentalcostsassociated.Theotherprojectinvestigatedthepotentialenvironmental savings of banning sales of bottledwaterattheWangarattaCampus.

csu and gotaFE sign Mou

SeniorrepresentativesfromCharlesSturtUniversity (CSU) and GOTAFE signed a Memorandum of Understanding (MOU) during November that will see building extensions to GOTAFE Rural Industries CampusinWangarattaforaCSUCentre.The $8 million project was funded by the Federal Government and involves collaborationbetweenCSUandGOTAFEto build, establish, develop, maintain anddeliverhighereducationprogramsinWangaratta.

In2013CSUwillofferitsBachelorofAgriculture Business Management and Bachelor of Agriculture degrees to GOTAFE students who have completed a Diploma or Advanced Diploma in Agriculture or related fields.ConstructionofthenewCSUcentreis expected to start in 2013.

Additionally,CSU,incollaborationwithGOTAFE,implementedatargetedmarketingcampaign aimed at encouraging GOTAFE/NCDEA Diploma and Advanced Diploma students to further their career through CSU’sExplore the Possibilities campaign.


LocaL PartnErsHIPs

secondary school students graduate from retail program

Twenty-fiveyearninestudentsfromWanganui Park Secondary College graduatedwithaCertificateIinRetailServices as well as Safe Food Handling unitsinJuneaftersuccessfullycompletinga unique Ready to Work retail program developed by GOTAFE. The program prepared high school students for casual employment in the retail and food industry within the region.

school holiday program with a difference

The NCDEA worked closely with local schools across Gippsland and North East Victoriatopromotetrainingopportunitiesand develop interest within agriculture. Studentsparticipatedinarangeofactivitiesincluding Chainsaw training, Farm Chemical training, ATV training, Tractor training, Wool Handling, Livestock Handling and OccupationalHealthandSafety.

Pigs in space

In partnership with the Department of Primary Industries (DPI) the Pigs in Space project developed electronic media (e-learning) to support and educate trainers for workplace training. The aim of the project is to educate workers in the Victorian pig industry. The project grant provided $42,200 to launch the e-learning strategy and establish the online training module.

robotics program TheGOTAFEroboticsprogramwasextended to include four schools located incloseproximitytoWangaratta:ChisholmSt, St Patricks, Appin Park and Milawa Primary Schools. The program, now in its fourth year, establishes team work, trust,mechanicalaptitudeandcomputerprogramminganddevelopsarelationshipbetween GOTAFE and the local primary school community.

customer service training for local businesses

A specialised customer service training program was implemented by the GOTAFE business studies and retail team for the Shepparton Show Me Step Up campaign. The program focused on providing businessownersandstaffwiththetoolstocommunicateeffectivelywithcustomers,createapositiveimpressionanddevelopand maintain customer service standards. TheSheppartonShowMecommitteewasestablished by Greater Shepparton City CounciltopromotetheofferingsoftheShepparton business community.

Learning through art

TheMulticulturalEducationCentre(MEC)delivered the People talking with people through art initiativethatprovidedanopportunity for students to get together and work on art-focussed projects with members of the Shepparton community. The program was conducted once a week over a six-week period at Shepparton Art MuseuminpartnershipwithRelationshipsAustralia.

Additionally,theMECwasabletoofferitsclientstwoimportantopportunitiestoprepareforcitizenshipthroughanelective(openenrolment)andaninvitationonlycourseofferedthroughtheDepartmentofImmigrationandCitizenship(DIAC).

three day acting workshop in Benalla

GOTAFERegionalAcademyofDramaticArts(GRADA), in partnership with the University ofMelbourne’sVictorianCollegeoftheArts(VCA)conductedfree,three-dayactingworkshops during July. The workshops were part of a Regional Training and Engagement Program conducted by the VCA, made possible through Arts Victoria funding.


IntErnatIonaL PartnErsHIPs

WhilstGOTAFEhasnooffshoreoperations,ithasestablishedinternationalpartnerships.

GOTAFE’sinternationalstrategyisfocusedontargetingAsianandPacificcountriesincluding China, Singapore, Indonesia and India due to proximity and current demand for Australian VET programs. GOTAFE programs in Equine, Dairy Farming and DairyProcessing,Horticulture,Viticultureand Performing Arts are in high demand in these countries.

Performing arts – singapore DuringOctoberthreekeyGOTAFEstaffundertook visits to competency based trainingorganisationsinSingaporetobuildrelationshipsanddetermineopportunitiesand strategies to develop and maximise trainingpathways.Specifically,staffinvestigatedcurrenttrainingpracticesandexploredpartnershipopportunitieswithinthe performing arts.

Key outcomes will be the development ofeducationalpathwaysforinternationalstudents into GOTAFE Diplomas and AdvancedDiplomas,specifically:

Ì GOTAFEdelivertheTAEqualificationtoteachingstaffatMastereignInstitute,Singapore on a Fee For Service (FFS) basis.

Ì A Memorandum of Understanding (MOU) is expected to be signed in early 2013 for the delivery of Performing Arts qualifications(CertificateIIItoDiploma)via an auspice arrangement with MastereignInstitute.

Equine – Malaysia

SeniorrepresentativesfromtheUniversityof Technology Malaysia (UTM) visited GOTAFE’sRuralIndustriesCampusandsigned an agreement that will further establish the partnership between UTM andGOTAFE’sNationalCentreforEquineEducation(NCEE).

Established key outcomes are:

Ì UTMwillutilisetheNCEE’sexpertiseinequineeducationtodevelopanequinefacility in Malaysia.

Ì GOTAFE will provide a diploma course inequineeducationattheuniversityinMalaysia.

Ì Increased ability for student exchange between the two campuses enabling both NCEE and UTM students to increase their equine knowledge and experiencefromaninternationalperspective.


gIVIng to tHE coMMunIty

Jobs and skills drive

GOTAFE supported the Department of Education,EmploymentandWorkplaceRelations(DEEWR)JobsandSkillsDriveinboth Benalla and Shepparton. The drives aim to provide employment and training opportunitiesforlocalpeople,withbothdrivesexceedingtheirtargets(Shepparton’sby 31 per cent).

seymour art Festival

HospitalitystaffandstudentssupportedtheSeymourArtFestival,locatedattheSeymour campus through the serving of food and beverages at the opening night cocktail party. The event provides students with valuable event experience.

students construct garden bed at pre-school

Seymour’slocalPre-Schoolcentrelocatedat the GOTAFE campus in Wallis Street benefittedfromtheskillsofCertificateIIinBuilding students who constructed garden beds as part of their course. The students wereenrolledinthePre-ApprenticeshipcourseatGOTAFE’sSeymourCampus.

Family amazing race SportandRecreationDiplomastudentsattheWangarattaCampusorganisedaFamilyAmazingRacedayduringSeptember.Morethan 120 people from the local community participatedintheeventthataimedatencouraging families and individuals to participateinafunactivitywithastrongfocus on health and well-being.

gVFL sponsorship

The Goulburn Valley Football League (GVFL) secured GOTAFE as the major naming rights sponsor for 2013 and 2014. The partnership continuestobeofsignificantbenefittoboth GOTAFE and the league, its clubs and their members.

Pink ribbon Brunch

Hospitality students assisted with serving more than 700 people at the Pink Ribbon BrunchatShepparton’sEastbankCentre.Theeventraised$30,000inprofitforthePinkRibbonappeal.Theinitiativeprovidesstudents with valuable experience and skills intheserviceoflargefunctions.


Infrastructure

$2.1m upgrade to automotive facility

GOTAFE’sredevelopedautomotivefacilityattheWangarattaCampuswascompleted as part of a $2.1 million project. The redevelopment was a result of Commonwealth Government funding providedtoaconsortiumthatincludedWangarattaHighSchoolandGOTAFE,undertheDepartmentofEducationEmploymentandWorkplaceRelations’(DEEWR) Trade Training Centres in Schools Program,togetherwithadditionalfundingcontributed by GOTAFE.

The funding has resulted in a number of improvements including open plan classrooms,anadditionallearningareaandalargeflexiblelearningspacealloverlooking the new workshop. The workshop improvements now provide access for students to a new paint and panelpreparationarea,sprayboothandavirtual paint simulator.

new clinical nursing lab at seymour

A new facility to house a clinical nursing laboratory was installed at the Seymour Campus to address the high demand for nursing training in the Seymour area. The simulationlaboratoryprovidesstudentswithon-campuspracticaltrainingandwasofficiallyopenedinJune.

Mannequins provide students with real life training

Two SimMan 3G Mannequins were purchased at a combined cost of $265,000 throughHigherEducationandSkillsGroup’s(HESG) Specialist Equipment Grant. The new units will be used extensively in the Institute’sexpandingNursingandAgedCareprogramsacrosstheWangaratta,Benalla,Shepparton and Seymour Campuses.

art and design studios receive equipment upgrade

60 Apple iMac computers were installed at the art and design studios at both the SheppartonandWangarattaCampuses.Graphicdesignstudentsbenefittedfromthenewindustryspecificequipment,featuring a 21.5 inch screen and the completeAdobeCreateSuiteandMicrosoftsoftware.The$106,000fundingtopurchase the iMacs was secured through HESG’sSpecialistEquipmentGrant.

taFE Broadband network project As part of the TAFE Broadband Network project VicTrack replaced an ageing network and secured high bandwidth servicestoGOTAFE’smajorcampusesusingaconnectiontotheTAFEBroadbandNetwork. The project was supported by HESG,andTBNpart-Bfundingwasutilised.

The new network will create a uniform, highcapacity,lowcost,Information,CommunicationsandTechnology(ICT)serviceaswellasimprovedconnectivitywithin campuses, enabling greater teaching andlearningcollaboration,moreflexibledeliveryoftrainingandreductionofstafftravel.

cheese pilot plant facility for Werribee

TheInstitute’sspecialistdairyprocessingtraining facility in Werribee received funding to install a specialist cheese pilotplantwithinitsexistingfacilityatWerribee.Thefacilitycosting$161,732willsignificantlyimprovethequalityoftrainingandmeetsignificantindustrydemandfortrainingintheareasofcertificates,diplomaand short courses for dairy and general foods industries.

Information technology snapshot

Ì Threehundredandfiftycomputerswereinstalled across all campuses at student spaces

Ì The engineering department changed toanew3DsoftwareprogramcalledSolidworks for training and merging with theCNCproductstheInstitutealreadydelivers.

Ì The GOTAFE website was redeveloped forbetteraccessibilityforstudentsandclients.Thenew‘lookandfeel’betterrepresents the recent rebranding and maintainsGOTAFE’scorporatestyle.


awards

gotaFE graduation

FourGOTAFEGraduationCeremonieswere held during March. Approximately 500studentsreceivedtheircertificatesinrecognitionofsuccessfullycompletingnationallyaccreditedqualifications.

The 2012 Outstanding Students of the Year for each campus were:

Ì Benalla CampusCherylRobertson,CertificateIIIinAgedCareandCertificateIIIinHomeandCommunity Care

Ì Seymour CampusSusan Holmes, Diploma of Nursing

Ì Shepparton CampusClaireHaigh,CertificateIIIinBeautyTherapy

Ì WangarattaCampusJaneD’Arcy,CertificateIIIinAgedCareandCertificateIIIinHomeandCommunity Care

TheguestspeakeratthegraduationswasArronWood,the2007PrimeMinister’sEnvironmentalist of the Year, who mobilises the school community through his Kids Teaching Kids Program which won the 2010 People’sChoiceBanksiaAward.

apprentice awards and graduations

The2012GOTAFEApprenticeAwardsandGraduationceremoniesheldatShepparton,Wangaratta,BenallaandSeymourcampuseswereattendedbymorethan700 people, comprising award winners, graduands, employers, school principals and guests.

A total of 111 awards were presented to the outstanding TEC students, pre-apprenticesandapprenticesfromGOTAFE’sAutomotive,Baking,Building,Electrical,Engineering, Hairdressing, Hospitality and Plumbing trade areas. In total, 925 students graduatedfromtheirrespectivetradecourses, although not all graduands were abletoattendanawardceremony.

GOTAFEApprenticeoftheYearawardwaswon by:

JayTozer–AdmoorPlumbing,fortheSeymour and Shepparton Campuses

Donald Hemann – Albury Auto Body Repairs,fortheBenallaandWangarattaCampuses.

Victorian training awards finalists

At the Victorian Training Awards carpentry student Regan Sheehan from Benalla was nominated for Victorian School-based ApprenticeoftheYear,nursingstudentSusan Holmes was nominated for Victorian VocationalStudentoftheYearandGOTAFEEmployerRelationsManagerCarolynCurnow was nominated for Victorian VET Client Service/Support Excellence Award.


Furnishing student receives Premier’s award

Cobram Secondary College and GOTAFE student Jason Finch received the Premiers Award for his outstanding work in furnishings.

aFL sportsready trainee of the year

GOTAFE school based trainee, Jacob Tunks was announced AFL SportsReady Trainee of the Year at an award night held in April. Jacob was chosen from around 300 students and undertook his traineeship at the Euroa Secondary College.

shepparton Business awards apprentice of the year

ApprenticeChrisLeewasthePowercorBusinessandServiceExcellenceApprenticeof the Year. The award recognised Chris’sexcellentprogressinhistraining,his approach to the job and overall performance. The award was sponsored by theApprenticeshipFactoryandprovidedChriswithapersonalisedplaqueandprizeworth $1,500.

dairy business awards

TheNationalCentreforDairyEducation(NCDEA) Gippsland student, Ashleigh Porter won the Young Achiever award category in the Gippsland SP Ausnet Business Excellence awards.

automotive student joins clipsal 500 racing team

AutomotiveapprenticeJoshWilliamsjoined the Tradingpost Racing team at the Clipsal 500 and Ford Performance Racing (FPR)aftertakingouttheTradingpostRacingRecruitcompetitionin2011.ThecompetitionwasV8Supercarsfirstnationalsearchtofindanapprenticemechanictocompletetheirfinalyearapprenticeshipaspart of a world-class motorsport team.

austaFE culinary challenge

NineCommercialCookeryapprenticescompeted in the AUSTAFE Culinary Challenge and were awarded three silver andsixbronzemedals.ThestudentswereselectedtoattendtheCulinaryChallengeattheFineFoodExpoinMelbourneaftercompletingaseriesofcookingchallengesduringclasstimeatboththeSheppartonandWangarattaCampuses.

student wins at international garden show

HorticulturestudentJenniBriodywontheGreatVictorianHangingBasketCompetitionattheMelbourneInternationalFlowerandGarden Show (MIFGS). Jenni was selected as the winner out of all Victorian TAFE entrantsbytheRoyalHorticulturalSocietyof Victoria (RHSV).

design student wins memorial award

Design student Aaron Palmer was presentedtheBainzDesignAwardatGOTAFEEXIT12ExhibitionduringNovember.TheBainzDesignEncouragement Award was founded in 1998 by the Baines family as a memorial to their son David Baines who was tragically killed in a car accident.


People

studEnt

Hospitality Masterclass

GOTAFE’slongrunninghospitalitymasterclass program provided students with the opportunity to gain knowledge and experience from passionate and acclaimed chefs and wine makers including: DalePrentice,directorofSousVideAustraliaandtheformerExecutiveChefofStones of the Yarra Valley; Mark Normoyle from the RACV Club Melbourne; Stephane Le Grand, Chef Trainer at the Crown Casino, Melbourne and Billy Dohnt, Chef, Euroa ButterFactory.

new Zealand study tour for dairy students

Five NCDEA students spent eight days visitingfarmsanddairyorganisationsintheNorth Island of New Zealand. The NCDEA joinedtheVictorianFarmersFederation(VFF) and United Dairyfarmers of Victoria (UDV) in leading the annual New Zealand Study Tour for young Australian dairy participants.

Interstate dairy tour

A Don Campbell Memorial Study Tour of Tasmaniawasconductedinconjunctionwith GippsDairy and managed by NCDEA. This program develops the leadership andcommunicationskillsof14youngfarmers as well as providing personal and professional development and credit towardsaunitofcompetency.Participantsutilisedthisopportunitytodevelopnetworksandidentifyinnovativeideasfortheirrespectivehomefarms.

cultural exchange program with asHE students

Students undertaking the Diploma of Sport andRecreationandstudentsfromtheAcademyofSportHealthandEducation(ASHE) conducted a cultural exchange program during June. The program involved studentslearningtraditionalindigenousgames and enabled students to learn from their cultural exchange.

Kids teaching Kids conference

Five GOTAFE Diploma of Events students along with trainer Claire Taylor managed theKidsTeachingKidsconferenceattendedby more than 700 hospitality and event students.Studentslearntfirsthandtheskills required to manage an event of this magnitude.

Hair and beauty students showcase skills

The skills of GOTAFE hairdressing and beauty students were showcased at several internal and external careers, community and fundraising events during 2012, including Careers Day Out, a women only pampering day, The Biggest Morning Tea and Pink Ribbon Brunch. The events provided an excellent opportunity for students to demonstrate and improve their skills.

renowned hair stylist visits gotaFE

Studentsandindustryrepresentativesweretreated to a hair masterclass presented by long hair stylist, Paula Hibbard from Sharon BlainEducationinAugustatGOTAFE’sShepparton Campus. Students showcased theirskillsduringthelivedemonstrationsectionoftheeveningthatwaswellattendedbyindustry.


staFF

Leadership programs

GOTAFE Commercial Managers, Cheryl Moylan and Jennifer Arnold completed the two year Leadership Development Program forEducationandTrainingManagers.Commercial Manager Hospitality, Ross Graham commenced the program in 2012. The leadership program is jointly delivered by The Chair Academy based in the United States and Victoria University.

LynneMcGregor-Carrollparticipatedinthe Fairley Leadership Program for the Goulburn Valley Region of Victoria.

Karen Vandesande completed the Alpine Leadership Program in North East Victoria.

Leadership forums

GOTAFE held three, one day leadership forums in 2012. All levels of management attendedthesedesignateddaystoreflecton results and discuss current issues including:

Ì identifykeyimprovementsfor2013

Ì budget re-forecasts and impact

Ì performance management human resources

Ì overview of Government budget announcements and impact for GOTAFE

Ì develop 2013 strategic and delivery plan based on new funding model and anticipateddemand

Ì GOTAFEtransitionplan

Ì upgrading of systems and resources

VEt development centre

GOTAFE was successful in obtaining a numberofcompetitivefundinggrantsofferedbytheVETDevelopmentCentrein 2012 to supplement the support and developmentofkeystaffandprogramsincluding:

Ì Building Industries Study Tour to New Zealand by Brendan Rogash

Ì InternationalTouronBestPracticein VET provision for Pathway training to Singapore by Louise Pearce, Jenny Jackson & Ian Poole

Ì Teaching and Learning Excellence program to up-skill and expand the LLN training workforce to support 10 GOTAFE teachingstafftoundertaketheGraduateCertificateinLanguage,LiteracyandNumeracyPractice.

Ì TAFE Specialist Scholarship for Samantha Hobbs to study double Diploma in Human Resource (HR) and Management

Ì Workforce Development – Customer ExperienceProject,acontinuationofthe change management project that commenced in 2011 to streamline the customer experience.

Ì Workforce Development – to provide professional development to 20 teachingstafftoincreaseLiteracy&Numeracy pedagogy, further develop an understanding of the LLN requirements of their training packages and develop collaborativeteachingpractices.

Ì Eleven VET Scholarships were awarded forstafftoundertake21697VICDiplomainVETPracticeandninescholarshipswere awarded to undertake TAE40110 CertificateIVinTrainingandAssessment.

staff development day

ThreepresentationsthemedGOTAFE to succeed in 2013wereorganisedforallstaffandheldatShepparton,WangarattaandWerribee Campuses during September. The presentationincludedanaddressbyCEO,PaulCulpanabouttheBusinessTransitionPlan as presented to Government.

reward and recognition strategy

GOTAFE currently recognises its people for theircontributiontotheInstitutethroughtheRewardandRecognitionprogram.TheEducationalExcellenceAwardshavefour categories, Teacher/Trainer of the YearandInnovativeTrainingawards,forteachingstaffonly,andServiceandSupportExcellenceAwardsforinnovationandcustomer service that are open to both teachingandnon-teachingstaff.

Winners of these awards are considered fornominationtotheVictorianTrainingAwards.


2012 Educational Excellence award winners

Teacher/Trainer of the Year: Jonathon Lee

InnovativeTraining:Lesley Sanderson

ServiceandSupportExcellence:BenallaAdministrationTeam–SueKilpatrick,JennyDuscher,ChristineClose,Karen Amarant and Kate Street

2012 Peer awards

These awards are presented quarterly to an individual or team who demonstrate exceptionalperformancetooneormoreofGOTAFE’sstrategicgoals.Stafffromallareas of GOTAFE are given an opportunity tonominateastaffmemberorteamwhothey believe to be a worthy recipient of an award. There were 14 recipients of the Peer Awards in 2012.

years of service awards

The annual Years of Service Award dinner washeldduringMayinGOTAFE’sCoversRestaurant at Fryers Street Campus, Shepparton.Twenty-ninestaffreceivedYears of Service Awards for 10, 15, 20, 25 or 30yearsofservicewiththeInstitute. TheeventwasattendedbyInstituteBoardmembers and senior management as well astherecipients’partners.(Theserviceperiod recognised was April 1, 2011 to March 31, 2012).

Professional development for Hair and Beauty staff

AnumberofHairandBeautystaffattendedindustry related events, including Salon MelbourneInternationalSpaandBeautyExpo, Advanced Nail training with Vivid and Biosculpture, Advanced Skin Care with Eve Taylor and lash extension training and hair colour workshops with a range of companies. The industry events created valuablelearningexperiencesforstaffandenhanced their specialist knowledge by keeping them up to date with the latest industry technologies.

trainer skypes students from London olympics

Events and Tourism Trainer, Claire Taylor conducted her lessons via skype whilst she worked at the 2012 London Olympics asPrestigeStadiumManager.Clairewasone of three managers responsible for the service of food and beverages in one of only six restaurants located at the Olympic Stadium. The restaurants seated 500 guests, catering for breakfast, lunch and dinner. Claire maintained contact with students giving them valuable hospitalityinsightsintotheworld’sbiggestinternationalsportingevent.

staff undertake new training and assessment qualification

Approximately420staffcommencedanupgrade to the new Training & Assessment TAE40110, which is the standard qualificationrequiredfortrainingandassessors from 1 July 2013. The upgrade iscompletedthroughacombinationofrecognitionofpriorlearning(RPL)and professional development training conducted by GOTAFE.

Benchmarking results in revised t&a strategy

A revised Training and Assessment Strategy (TAS)e-formwasdevelopedafterabenchmarking exercise was undertaken withanumberofotherTAFEinstitutes.TheTASisakeycomponentofGOTAFE’sASQAcompliancedocumentationandprovides a comprehensive training and assessment strategy for delivery of each qualification.

graded assessment approach implemented A new Graded Assessment approach was implemented in late 2012. The scope of the project was to summarise the research findings,processesandpracticesrelatedtoGradedAssessment,reviewGOTAFE’sapproachandassociateddocumentationand recommend a consistent approach.


sustainability

EnVIronMEntaL sustaInaBILIty

Implementation of Environmental Management Plan

A key focus for environmental sustainability initiativesin2012hasbeentheimplementationofGOTAFE’s2012-2013Environmental Management Plan that was developed as part of a ResourceSmart TertiaryEducationprogram.Keyobjectivesand targets were established in the plan within the areas of Management andCommunications,EducationforSustainability,Waste,EnergyConsumptionand Greenhouse Gas Emissions, Transport, Water, Purchasing, and Planning & Infrastructure.

Peer awards modified to incorporate sustainability criteria

ThecriteriaforstaffPeerAwardswererevisedtoincludeprovisionforexceptionalperformanceinoneofGOTAFE’sstrategicgoals, including the Sustainability Goal “toachievestrongfinancialresults,environmental improvements and contribute to social development in our region”.ThiswasaninitiativeoftheEnviroTeamscomprisedofstafffromthefourmajor campuses.

reshaping the vehicle fleet and reducing travel and emissions

GOTAFE completed its program to replace all petrol fuelled GOTAFE cars with diesel, LPG or dual fuel (one vehicle only) vehicles, further reducing fuel use, costs and greenhouse gas emissions. The vehicledatashowsan18%reductioninautomotivetravelforInstitutecarsin2012compared with 2011, against a target of 10%reduction.

Areductionof53%wasachievedinairtravel and associated greenhouse gas emissions.

Improved connectivity reduces intra-campus travel

Aonegigabytebroadbandfibreopticproject was completed in May to improve ICTconnectivitybetweencampusesandfacilitate reduced intra-campus travel of staff.Anincreaseof30%intheutilisationofAdobe-Connectformeetingsandtrainingdeliveryoccurredin2012,continuingatrend in the uptake of ICT.

FInancIaL sustaInaBILIty

summary of Business results for 2012

operating revenue $72,766,000

Property, Plant and Equipment assets $86,654,000

student Enrolments 20,437

student contact Hours 6,334,598


the Board of gotaFE demonstrates a broad range of background, skills and ability.

the Board endeavours to have an ongoing membership that covers all of the areas necessary to provide leadership and good governance for the Institute.

2012 Board Members

GEOFFREyOLivER

REBECCAwOOLSTEnCROFT

PETER quinn

ALLAnO’kEEFE

LiSBETH LOnG

CHRiSTOPHER MCPHERSOn

PAuLCuLPAn

SARAHMCkEnziE

AdAMFuRPHy

MiCHAEL TEHAn

AnnTELFORd

MiCkLOSCAvO


MIcHaEL tEHan

chairman

Lawyer,Tehan,George&CoCo-opted Director, Appointed 17/03/97

Michael is the senior partner of Tehan, George&Co,alegalfirmoperatinginEuroaandSeymour.Hehasparticularskillsinlegalmatters,localgovernment,audit,regional development, strategic planning, community networking and development, tourism,hospitalityandvocationaleducationandtraining.

Michael has a Bachelor of Laws and is aNotaryPublicandqualifiedmediator.Michael is also a Board member of the BenallaPerformingArtsandConventionCentre.

LIsBEtH Long

deputy chairman

GeneralManager,SilentRangeEstateMinisterial (Industry) Director, Appointed 14/07/08

Lisbeth has a Bachelor in Economics and is the General Manager of a vineyard and wineryatWangaratta.Shehasextensiveexperienceineducationandtraining,governance, corporate management, finance,law,organisationaldevelopment,risk management and strategic planning.

adaM FurPHy

deputy chairman

ManagingDirector,J.Furphy&SonsMinisterial Director, Appointed 16/03/09

Adam has a Bachelor of Engineering (Mechanical) and is the Managing Director ofJ.Furphy&Sonswhichisafifthgenerationmanufacturingbusinessbasedin Shepparton. He has experience with apprenticeshipsandindustryparticipationinvocationaleducation.Hehasexperiencein business development and business-to-businessrelationshipmanagement.

Adam is presently Chairman of the La Trobe University Shepparton Campus – Regional AdvisoryBoard,ChairmanoftheScottPeoplesFoundationandaTrusteeoftheSheppartonMechanicsInstitute.

gEoFFrEy oLIVEr

Small Business OperatorCo-opted Director, Appointed 17/03/97

GeoffistheownerofaretailbusinessinBenalla and Chairman of Associated Retailers PtyLtd,anationalretailpurchasinggroup.He is Chairman of the Board of the Benalla PerformingArtsandConventionCentre

Hehasparticularskillsinregionaldevelopment,specificallyintheareasofarts and theatre, business management, community networking, local government, educationandtrainingandmarketing.

cHrIstoPHEr McPHErson

ManagingDirector,McPhersonMediaGroup Ministerial Director, Appointed 30/11/09

Chris is Managing Director of the McPherson Media Group and its publishing and printingcompanies.Chrisisalifememberand director of Victorian Country Press Association,alifememberofthePacificAreaNewspaperPublishersAssociation,alife member and director of Country Press Australia and Chairman of Country Press CooperativeCompanyLimited.

ChrishascompletedtheCompanyDirector’sCourse Diploma and is a Fellow of the AustralianInstituteofCompanyDirectors.In 2012 he completed a Bachelor of Applied Management (BAMS) through GOTAFE.

ann tELFord

RegionalManager,EnvironmentProtectionAuthority(HumeRegion)

Ministerial Director, Appointed 30/11/09,

Ann holds an Australian and New Zealand SchoolofGovernment(ANZSOG)ExecutiveMasterofPublicAdministration,aGraduateCertificateinEducationalLeadershipand Management and a Bachelor of Arts (Liberal Studies). She has experience in local government, the community sector and the public service.

She also serves as a Board Member of the Alpine Valleys Community Leadership Program and the Benalla Performing Arts.


PEtEr QuInn

ManagingDirector,GVWaterMinisterial Director, Appointed 26/10/11

Peter is Managing Director of Goulburn ValleyWater,holdsanExecutiveMBA,is a Churchill Fellow, a member of the AustralianPropertyInstituteandtheAustralianInstituteofCompanyDirectors.He currently serves on the Board of WaterAid Australia and the Victorian Smart Water Fund.

rEBEcca WooLstEncroFt

Partner,MB+MGroupMinisterial Director, Appointed 05/03/12

Rebecca is a Chartered Accountant and has a Bachelor of Commerce degree. She is a Partner of MB+M Chartered Accountants Shepparton. Rebecca is presently a member oftheInstituteofCharteredAccountantsAustralia.Herexpertiseincludesstrategicand business development plans for small andmediumsizedbusinesses,inparticularworking with business owners to develop business and personal goals, and to set actionsaroundthosegoalstoensuretheirachievement.

PauL cuLPan

ChiefExecutiveOfficer,GOTAFE

Appointed 01/01/09

MIcK LoscaVo

StaffRepresentativeAppointed 16/12/11

aLLan o’KEEFE

StudentRepresentativeAppointed 16/12/11 - 31/03/12

saraH McKEnZIE

StudentRepresentativeAppointed 12/03/12

Meeting attendance

Board Member Attendance

Michael Tehan 10 /11

GeoffOliver 7/11

Lisbeth Long 10/11

Adam Furphy 9/11

Ann Telford 9/11

Chris McPherson 10/11

Peter Quinn 9/11

RebeccaWoolstencroft 8/10

Paul Culpan 11/11

Mick Loscavo 10/11

SarahMcKenzie 6/9

AllanO’Keefe 2/2

Board Values and code of conduct

TheBoardofGOTAFEprovideseffectivecorporategovernancefortheInstitutewithin the legal framework provided by the various acts, orders and ministerial directions.TheBoardhasadoptedavision,mission and values statement for the Board itselfandfortheInstitute.

The Board operates in accordance with the Excellence in Governance: A Guide toBestPracticeinTAFEInstituteBoardsmanual published by the Victorian TAFE Association.

Board committees

TheBoardhasthreecommittees:

Ì Executive Ì Audit Ì Remuneration

TheExecutiveCommitteeactsonbehalfoftheBoardbetweenBoardmeetingsandalsoprovidesanoversightoftheInstitute’sindustrialrelationsmatters.MembersoftheBoardwhoheldpositionsonthisCommitteein2012wereMichaelTehan,Lisbeth Long and Adam Furphy.

TheAuditCommittee’sroleistooverseetheroleandeffectivenessoftheInstituteauditors and to ensure appropriate management response and follow up to meet the good governance requirements oftheInstitute.MembersoftheBoardwhoheldpositionsonthiscommitteein2012were, Lisbeth Long, Michael Tehan, Adam Furphy, Ann Telford and Peter Quinn.

TheRemunerationCommitteeprovidesassurancetotheBoardrelatingtotheeffectiveness,integrityandcomplianceofremunerationpoliciesandpractices.TheRemunerationCommittee’smainfocusisonseniorexecutiveandtheCEOremuneration.

TheCommitteealsoconcernsitselfwiththeoverallapproachtoremunerationbytheInstitute.MembersoftheBoardwhoheldpositionsonthiscommitteein2012wereMichaelTehan,LisbethLong,GeoffOliverand Chris McPherson.

OnlyBoardmembersholdpositionsonthesecommittees.

Board training

In2012fourBoardmembersattendedthe VictorianTAFEAssociation(VTA)StateConference (Melbourne) to assist them in undertakingtheirBoardduties.Theywere:

Ì Michael Tehan Ì Lisbeth Long Ì GeoffOliver Ì Paul Culpan


Executive Management Team

the gotaFE Executive Management team’s focus is strategic leadership and business development, with day-to-day operations supported by middle management under a policy and procedural framework established by the Executive Management team under the Board’s delegation framework.

PETERCARkEEk

ALBERTAMAdEi

nATASHA MCCORMiCk

JEAnETTEBROwn

RuSS FRAnCiS

SAndyPOwELL

GEOFFREyCOBBLEdiCk

PAuL CuLPAn

LOuiSEPEARCE


Paul culpan

cHIEF ExEcutIVE oFFIcEr

TheChiefExecutiveOfficer(Director)isemployedbytheBoardoftheInstitutewithsignificantdelegationsofauthorityfromthe Board to:

Ì AssisttheInstituteBoardintheupdateandimplementationofitslong-termstrategicdirectionsinoperationalterms

Ì ProvideleadershipandauthoritativeadvicetotheInstituteBoardandBoardCommitteesonthestrategicdirections,policies and review mechanisms for the Institute

Ì PromoteandrepresenttheInstituteto governments and government authoritiesinordertogaincontractsandresourcestoachievetheInstitute’sgoals

Ì LeadanddeveloptheInstitutetoensure that it maintains its status asanationallyRegisteredTrainingOrganisation(RTO)andthatitsfunctionsarebenchmarkedagainstbestnationalandinternationalpractice

russ Francis

dEPuty cEo & gEnEraL ManagEr corPoratE dEVELoPMEnt(rEsIgnEd 12 MarcH 2012)

Responsibilitiesare:

Ì Planning and research - strategic and operationalbusinessplanning

Ì OrganisationalDevelopment-workforcedevelopment,industrialrelationsandhuman resources

Ì EducationalDevelopment-ASQAcompliancesupport,tertiaryeducationpartnerships, blended learning strategy andimprovingqualityteachingpractices

Ì BusinessDevelopment-marketingandbusinessdevelopmentinitiatives,majoreventsandpublications

Ì StudentRecords-QLSfunctionality,newStudent Management System, scope of registration,enrolmentsandresulting,andapprenticeshipandtraineeshipcoordination

Ì Digital Services and Design - internet and intranet websites, design of Institutepublicationsanddigitalbusiness process improvements

Ì Student Services – careers advice, professional welfare counselling and youth pathways projects

Ì InformationAccess–librariesandbookshop

Ì Seymour Campus Management – campus support and Wallan growth corridor development

geoffrey cobbledick

gEnEraL ManagErFInancE and InFrastructurE


Ì Financial management and procurement Ì Property, capital development,

equipment and minor works Ì Informationandcommunicationstechnology,informationsystems

Ì Audit and risk management Ì Environmental sustainability Ì Quality compliance Ì Legal Ì Commercialoperations-Benalla,WangarattaandShepparton

Ì BenallaPerformingArtsandConventionCentre (BPACC)

Ì OrganisationalDevelopment(April2012)

Ì InformationAccess(October2012) Ì Student Services (October 2012)

Peter carkeek

ExEcutIVE ManagErnatIonaL cEntrE For daIry EducatIon austraLIa (ncdEa) – daIry FarMIng


Ì CoordinatingtherolloutoftheNationalCentreforDairyEducationAustralia(NCDEA) within Victoria and across Australia

Ì Developingindustryrelationshipsandharnessing industry resources

Ì liaising with the regional industry guidance group network

Ì Overalloperations Ì Strategic development Ì Financial and team management

Ì Marketing,CommunicationsandBusinessDevelopment-marketingandbusinessdevelopmentinitiatives,majoreventsandpublications(October2012)

VocationalPathwaysDivisionincludes(fromOctober 2012):

Ì MulticulturalEducationCentre(MEC) Ì KoorieEducationUnit(KEU) Ì Learning Skills Unit


sandy Powell

ExEcutIVE ManagEr ruraL and ManuFacturIng IndustrIEs


Ì Overalloperations Ì Strategic development Ì Financial management Ì Management of teaching delivery teams andsupportstaff

Ì Educationaldevelopment Ì Development of key industry relationships

Rural and Manufacturing Industries Division includes:

Ì Agriculture Ì AmenityHorticulture Ì Animal Sciences Ì ConservationandLandManagement; Ì Food Processing Ì Manufacturing Ì NationalCentreforDairyEducation

Australia (NCDEA) – Dairy Processing Ì NationalCentreforEquineEducation

(NCEE) Ì OccupationalHealthandSafety(OHS) Ì ProductionHorticulture Ì TransportandLogistics Ì Veterinary Nursing Ì Viticulture

Louise Pearce

ExEcutIVE ManagErsErVIcE IndustrIEs


Ì Overalloperations Ì Strategic development Ì Educationaldevelopmentandgrowth Ì Development of partnerships and articulationwithUniversitiesandACEproviders

Ì Industryengagementandrelationshipdevelopment with a range of organisations

Ì Management of teaching delivery teams andsupportstaff

Ì Financial management

Service Industries Division includes:

Ì Art and Design Ì Business Ì InformationTechnology(IT) Ì Management Ì Community Services Ì Children’sServices Ì Health - includes Nursing and First Aid Ì GOTAFERegionalAcademyofDramatic

Arts (GRADA) Ì SportandRecreation

Jeanette Brown

ExEcutIVE ManagEr,VocatIonaL PatHWays (rEsIgnEd 28 sEPtEMBEr 2012)


Ì Educationaldevelopment Ì Strategic development Ì Financial management Ì Management of teaching delivery teams andsupportstaff

Ì Relationshipdevelopmentwitharangeoforganisationsandindividualclients

VocationalPathwaysDivisionincludes:

Ì MulticulturalEducationCentre(MEC) Ì KoorieEducationUnit(KEU) Ì Learning Skills Unit Ì CorrectionsEducationCentre.

albert amadei

ExEcutIVE ManagEr

tEcHnoLogy IndustrIEs


Ì Educationaldevelopment Ì Relationshipdevelopment Ì Management of teaching delivery teams andsupportstaff

Ì Financial management Ì VocationalEducationandTraininginSchools(VETiS)businessactivity

Technology Division includes:

Ì Automotive(MechanicalandBody) Ì Building and Plumbing Ì Electrical Ì Engineering (Mechanical and Fabrication)

Ì Hair and Beauty Ì Hospitality & Baking Ì Retail Ì SheppartonTechnicalEducationCentre

(TEC) Ì WangarattaTechnicalEducationCentre

(TEC) Ì CorrectionsEducationCentre(October

2012)

coMPLIancE InForMatIon | 25

coMPLIancE InForMatIon

Statutory Requirements & Statements

the Institute’s 2012 annual report has been prepared in accordance with the requirements of the Freedom of Information Act 1982, Building Act 1993, Tertiary Education Act 1993, directions of the Minister for Finance issued under section 8 of the Financial Management Act 1994, the decision of Public accounts and Estimates committee of Parliament, the Public Sector Management and Employment Act 1998, the oHs Improvement strategy for the Victorian Budget sector, department of treasury and Finance (october 2001) and the Whistleblowers Protection Act 2001.

Therequiredreportingappearsthroughoutthispublication,eitherinthemainbodyofthe Annual Report or on the following pages. A Disclosure Index appears at the end of thispublicationtofacilitateidentificationof compliance with statutory disclosure requirements.

additional Information available on request

Consistent with requirements of the Financial Management Act 1994, GOTAFE has prepared material on the following items, details of which are available to the relevant Minister, Members of Parliament and the public on request:

Ì statementregardingdeclarationsofpecuniary interest

Ì sharesheldbyseniorofficersbeneficiallyorasnomineesofastatutory authority or subsidiary

Ì publications Ì changes in prices, fees, charges, rates

and levies Ì major external reviews Ì major research and development activities

Ì industrialrelationsissues Ì majorcommitteessponsoredby

GOTAFE Ì overseas visits taken

Enquiries regarding details of any of the above should be addressed to:

Mr Paul CulpanChiefExecutiveOfficerGoulburnOvensInstituteofTAFE152 – 200 Fryers Street, Shepparton, Victoria 3630

Phone: 1300 GOTAFE (1300 468 233)Email: [email protected]: www.gotafe.vic.edu.au

Freedom of Information

GOTAFE operates in accordance with the Freedom of Information Act 1982 and its amendments.

During 2012 there were no requests receivedforaccesstoInstitutedocumentsorinformationundertheFreedom of Information Act 1982legislation.

TheauthorisedFreedomofInformationOfficerfortheInstituteistheGeneralManager Finance and Infrastructure, who isresponsiblefortheinitialreceiptandactionuponrequestsforinformationoraccess to a document or record. Enquiries regarding access can be made by phone to the General Manager Finance and Infrastructure on 1300 GOTAFE (1300 468 233)inthefirstinstance.Formalrequestsfor access to documents or records under FreedomofInformationarerequiredtobedirectedinwritingto:

TheChiefExecutiveOfficerAttention:FreedomofInformationOfficerGoulburnOvensInstituteofTAFE152 – 200 Fryers Street, Shepparton, Victoria 3630

Charges for access are in accordance with the Freedom of Information (Access Charges) Regulations 1983.


Maintenance and capital works

GOTAFE’saimisfortheprovisionofqualityinfrastructure which is compliant with the following;

Ì Building Act 1993 Ì Building Regulations 2006 Ì Building Code of Australia Ì Disability Act 2006

Actionsfor2012included;

Ì update of Asset Management Plan Ì program,reactiveandgeneral

maintenance and repairs of buildings, plant and grounds

Ì management of compliance to EssentialSafetyMeasureswithBuildingCommission

Ì management of compliance to cooling towers system with Building Commission

Ì re-tendering of numerous maintenance contracts

Ì numerous minor works based on a FacilitiesAudit

Ì constructionofAutomotiveTradeTrainingCentreatWangarattainpartnership with a cluster of local high schools

Ì developmentofdesigndocumentationfortheconstructionofajointagriculture facility at Rural Industries CampusWangarattainpartnershipwithCharles Sturt University

Ì commencementofconstructionofatraining facility at Shepparton for Hair & Beauty

Ì minorworksatWangarattawitharedistributionofspaces

Whistleblowers’ protection

GOTAFE has a procedure in place to meet the requirements of the Whistleblowers Protection Act 2001. There were no disclosuresmadetotheInstituteduring2012, nor any disclosures referred to or from the Ombudsman or taken over by the Ombudsman. There were norecommendationsmadebytheOmbudsman under the Act that related to theInstitute.

competitive neutrality

TheInstitutehasaclearlyestablishedpolicyonCompetitiveNeutralitythathelpsensure compliance with Government legislationwithinthespiritoftheNationalCompetitionPolicyandtheVictorianGovernment’sCompetitiveNeutralityPrinciples. This policy is applicable to commercialactivityandtopricingofbids for that part of government-funded educationandtrainingthatisadvertisedforcompetitivetender.

TheInstitutehasdevelopedandmaintaineda pricing model that ensures prices charged forbusinessactivityreflectallcostsapplicable and that all advantages and disadvantages of Government ownership areincludedinpricingcalculations.

External reviews

There were no major external reviews carriedoutontheInstitutein2012.

non-academic student Fees

2012 students enrolling in government-funded programs were provided a brochure onInstituteFeesandCharges.Thisdetailed:

Ì fees and charges Ì exemptionsandconcessionsinformation

Ì financialassistanceandrefunds Ì StudentServicesandAmenitiesFee

Fees and charges and Student Services informationwasalsoavailableontheInstitute’swebsite.

ThepurposeforwhichtheInstitutecollected the Student Services and AmenitiesFeewastoprovidearangeofservicesandamenitiestostudents.Themanagement of the funds from the fees was delegated to the Manager Student Services through budgets.

In2012theInstitutecollectedanetamountof$535,524fromtheapplicationoftheStudentServicesandAmenitiesFee. This amount was fully expended on studentservices,amenitiesandactivities,

whichincludedorientationactivities,student handbook, youth pathway plans, counselling,disabilitysupport,firstaidassistanceandstudentactivities,supportandinformationonvarioustopics,accommodation,publictransport,courseadvice and fee payment assistance and healthinformation.

The expenditure was as follows:

Ì SalaryofStudentServicesOfficersandCounsellingOfficers-$787,356

Ì Non-Salary - $32,215

TheservicesprovidedbytheInstituteforstudents were further detailed within the Student Services brochures provided at the point of enrolment and displayed and made freelyavailablethroughouttheInstituteand on the GOTAFE website.

recruitment

By the end of December 2012 GOTAFE hadadvertised48positions,38ofthesepositionswereadvertisedbothinternallyandexternallyand10advertisedonlyinternally.Ofthese48positionssevenwerenotfilled.Thiswaseitherduetothepositionbeingwithdrawnorduetothecandidatenotbeingsuitablyqualifiedorexperienced for the role.

Workforce information

AverageEquivalentFullTime(EFT)StaffingStatistics:

Classification 2011 2012

Executive 3.5 2.2

Teaching 243.2 233.6

PACCT 133.0 120.7

Casuals/Sessionals 66.3 69.7

Others (Agreed Contracts)

46.8 47.2

Totals 492.8 473.4

Note: The information above represents an average equivalent full-time (EFT) staffing figure for the 2011 and 2012 calendar years, i.e. the sum of the monthly figures divided by 12.


occupational Health and safety

GOTAFEiscommittedtotheprovisionofa safe and healthy working environment forstaff,students,contractorsandvisitors.During2012,theInstituteimplementedits2011-2012OccupationalHealthandSafety(OHS) Plan. Key performance indicators developedthroughtheOHSCommitteetomonitorInstituteOHSperformanceforthe2012 year included:

Ì Review of the 2010-2011 OHS Plan and development of future strategies for 2012-2013; and

Ì Revision of OHS procedures.

Maintenanceofincidentreporting,follow-upandfinalisationprocesses:

Ì There were 165 incidents reported withintheInstituteduring2012,18fewer in total than 2011.

ProvisionofOHStrainingforInstitutestaffinidentifiedpriorityareas,with105persons trained in the following areas:

Ì FireandEvacuationWardenTraining Ì First Aid Training: Apply First Aid Ì FirstAidTraining:CPRandDefibrillator

update Ì IntroductiontoOHSforSupervisorsandHSR’s

Ì ContractorInduction

Implementationofsystematichazardidentificationprocess:

Ì 512HazardInspectionswereundertakenacrosstheInstitute.

Ì 506 Risk Assessments of Plant and Equipment, Manual Handling and Chemicals took place at the workplace level

Workcover&InjuryManagementPerformance:

TheInstituteLostTimeInjuryFrequencyRate (LTIFR) for 2012 Workcover claims was calculated for Standard Workcover claims, and All Workcover claims (Standard and Minor) as per AS1885.

The LTIFR is the number of occurrences of injury/disease for each one million workhoursworkedbystaffandisusedtomeasureOHStrendsovertime.Resultsfor2012 were:

i. Standard Workcover Lost Time claims – 2.96 occurrences/million work hours (significantlylowerthan2011).

ii. All Workcover Lost Time claims – 7.40 occurrences/million work hours (lower than 2011).

The Incidence Rate for Workcover leave claims for 2012 was 0.806 incidents per 100 workers/annum (lower than 2011).

The Average Time Lost Rate (ATLR) for losttimeinjurieswasmeasuredasanindicator of injury/illness severity and the effectivenessoftheinjurymanagementreturn to work system. The ATLR for each2012losttimeclaimwas8.00days(significantlylowerthan2011).

SeveralHealth&Safetyinitiativeprogramswere introduced during 2012. These were:

Ì Introductionofaregular6monthlyrestocking program for all First Aid facilitiesacrossallcampuses,

Ì Completionofthe2011Facilitiesworksprogramwithallidentifiedhealthandsafety related improvement works having been completed during 2012.

application of Employment and conduct Principles

GOTAFEiscommittedtorecruitingthebestavailablepeopleintotheorganisationandremuneratingthemappropriately.Recruitmentpracticesareinaccordancewith the Government guidelines to ensure thattheInstitutemeetstherequirementsof the Public Sector Management and Employment Act 1998. Recruitment processesaredetailedintheInstitute’sRecruitment Policy and associated procedures.

TheInstituteobservesanEmployeeCodeofConduct Procedure detailing the minimum obligationsandstandardsofpersonal

behaviourandconductexpectedofstaffemployedbytheInstitute.Thepurposeofthe code is to promote adherence to the public sector values prescribed in the Public Administration Act 2004. The code outlines standards of behaviour rather than detailed policies and procedures.

AllnewstafftotheInstituteareprovidedwith a copy of the Code of Conduct for Victorian Public Sector Employees Handbookatthepointofinduction.

Industrial relations TheAEU(AustralianEducationUnion)consultativeCommitteemetregularlyduring 2012 with a small number of teachingstafftakingindustrialactionduring2012 in response to State Government fundingadjustments.TheMulti-BusinessAgreement 2009 that was in place with teachingstaffwasextendedforatwelvemonth period in October 2012.

ItisanticipatedthatanewNon-TeachingPACCT(Professional,Administrative,Computing,ClericalandTechnical)CertifiedAgreementwillbenegotiatedduring2013.


consultants

TheInstituteengagedsixconsultantsduring2012;coststotalled$65,414exclGST.

There were three consultants engaged during 2012 that were less than $10,000 totalling $6,243 excl GST.

There were three consultants engaged during 2012 that were in excess of $10,000 as follows:

Consultant/ProjectTotalapproved

projectfee Expenditure

GillSawyerConsultingCustomer Service Excellence

$10,473 $10,473

FiveConsultingVarious Standards Compliance Consultations

$25,875 $25,875

Vince Chrisp ArchitectsArchitectural Consultancy Services

$22,823 $22,823

There are no future expenditure commitments with the above consultants.

GOTAFE contracted an external auditor, Burns, Counter & Associates, to undertake reviews of20qualificationsagainstelementsinStandards15and16oftheASQAStandardsforNVRRegisteredTrainingOrganisations.Thereviews,conductedbetweenMayandOctober,andsubsequent audit reports, proved most valuable to teaching centres and management of where improvements could be made.

attestation on compliance

AttestationoncompliancewiththeAustralian/New Zealand Risk Management Standard.

I, Michael Tehan, Chair of the Goulburn Ovens Institute of TAFE (GOTAFE) Board, certify that the Goulburn Ovens Institute of TAFE (GOTAFE) has risk management processes in place consistent with the Australian/New Zealand Risk Management Standard (or equivalent designated standard) and an internal control system is in place that enables the executive to understand, manage and satisfactorily control risk exposures. The audit committee verifies this assurance and that the risk profile of GOTAFE has been critically reviewed within the last 12 months.

Michael H. TehanChair of the BoardGOTAFE, January 2013

summary of Financial resultsAsummaryofthefinancialresultsoftheInstitutewithcomparativeresultsforthepreviousfiveyearsappearsinthefollowingtable:

Financial indicator 2012 2011 2010 2009 2008

OperatingRevenue[Excludes capital contributions] 72,766,000 53,493,000 53,141,000 48,132,000 43,558,000

OperatingSurplus/(Deficit)[Excludes capital contributions, depreciation and profit/loss on asset disposals]

14,507,000 (1,452,191) 2,103,000 3,268,000 599,000

Liquidity Ratio [Current Assets / Current Liabilities adjusted to exclude long-term benefits]

4.81 2.88 3.08 2.62 2.90

Theincreaseintheoperatingrevenuein2012reflectsincreaseddeliveryofstudentcontacthoursandresultingincreaseinVictorianGovernmentcontestabilityfunding.Theimprovementintheoperatingresultfor2012reflectsthird-partyprogramdeliveryefficienciesandcontrols on non-salary costs.


INDEPENDENT AUDITOR’S REPORT

TotheBoardMembersofGoulburnOvensInstituteofTechnicalandFurtherEducation

The Statement of PerformanceTheaccompanyingstatementofperformancefortheyearended31December2012oftheGoulburnOvensInstituteofTechnicalandFurtherEducationwhichcomprisesthestatement,therelatednotesandthedeclarationoftheChairoftheBoard,ChiefExecutiveOfficer,andChiefFinanceandAccountingOfficerhasbeenaudited.

The Board Members’ Responsibility for the Statement of Performance

TheBoardMembersofGoulburnOvensInstituteofTechnicalandFurtherEducationareresponsibleforthepreparationandfairpresentationofthestatementofperformanceinaccordancewiththe Financial Management Act 1994 and for such internal controlastheBoardMembersdetermineisnecessarytoenablethepreparationandfairpresentationofthestatementofperformance that is free of material misstatement, whether due to fraud or error.

Auditor’s ResponsibilityAs required by the Audit Act 1994, my responsibility is to express an opinion on the statement of performance based on the audit,whichhasbeenconductedinaccordancewithAustralianAuditingStandards.Thosestandardsrequirecompliancewithrelevantethicalrequirementsrelatingtoauditengagementsandthattheauditbeplannedandperformedtoobtainreasonableassurance about whether the statement of performance is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the statement of performance. The audit procedures selected depend on judgement, including the assessment of the risks of material misstatementofthestatementofperformance,whetherduetofraudorerror.Inmakingthoseriskassessments,considerationisgiventointernalcontrolrelevanttotheentity’spreparationandfairpresentationofthestatementofperformanceinorderto design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectivenessoftheentity’sinternalcontrol.Anauditalsoincludesevaluatingtheoverallpresentationofthestatementofperformance.

IbelievethattheauditevidenceIhaveobtainedissufficientandappropriatetoprovideabasisformyauditopinion.

IndependenceTheAuditor-General’sindependenceisestablishedbytheConstitution Act 1975. The Auditor-General is not subject to directionbyanypersonaboutthewayinwhichhispowersandresponsibilitiesaretobeexercised.Inconductingtheaudit,theAuditor-General,hisstaffanddelegatescompliedwithallapplicableindependencerequirementsoftheAustralianaccountingprofession.

VAGOVictorian Auditor-General’s Office

Level 24, 35 Collins Street, Melbourne VIC 3000 Telephone 61 3 8601 7000 Facsimile 61 3 8601 7010 Email [email protected] Website www.audit.vic.gov.au

Auditing in the Public Interest


INDEPENDENT AUDITOR’S REPORT (continued)

OpinionInmyopinion,thestatementofperformanceoftheGoulburnOvensInstituteofTechnicalandFurtherEducationinrespectofthe31December2012financialyearpresentsfairly,inallmaterialrespects,inaccordancewiththeFinancial Management Act 1994.

Matters Relating to the Electronic Publication of the Audited Performance StatementThisauditor’sreportrelatestotheperformancestatementoftheGoulburnOvensInstituteofTechnicalandFurtherEducationfortheyearended31December2012includedbothintheGoulburnOvensInstituteofTechnicalandFurtherEducation’sannualreportandonthewebsite.TheBoardMembersoftheGoulburnOvensInstituteofTechnicalandFurtherEducationareresponsiblefortheintegrityoftheGoulburnOvensInstituteofTechnicalandFurtherEducation’swebsite.IhavenotbeenengagedtoreportontheintegrityoftheGoulburnOvensInstituteofTechnicalandFurtherEducation’swebsite.Theauditor’sreportrefersonlytothesubjectmatterdescribedabove.Itdoesnotprovideanopiniononanyotherinformationwhichmayhavebeen hyperlinked to/from these statements. If users of the performance statement are concerned with the inherent risks arising frompublicationonawebsite,theyareadvisedtorefertothehardcopyoftheauditedperformancestatementtoconfirmtheinformationcontainedinthewebsiteversionoftheperformancestatement.

MELBOURNE Dr Peter Frost22 March 2013 Acting Auditor-General





Inouropinion,theaccompanyingStatementofPerformanceoftheGoulburnOvensInstituteofTechnicalandFurtherEducation,inrespectof the year ended 31 December 2012, is presented fairly in accordance with the Financial Management Act 1994 and applicable Financial ReportingDirectionsissuedunderthatlegislation.

The Statement outlines the performance indicators as determined by the responsible Minister, pre-determined targets and the actual resultsfortheyearagainsttheseindicators,andanexplanationofanysignificantvariancebetweentheactualresultsandperformancetargets.

Atthedateofsigning,wearenotawareofanycircumstancethatwouldrenderanyparticularsincludedintheStatementtobemisleadingor inaccurate.

GeoffreyCobbledickChiefFinanceandAccountingOfficer

Shepparton, 21 March 2013

Michael TehanChair of the Board


Paul CulpanChiefExecutiveOfficer


Statement Of PerformanceFor the year ended 31 december 2012


KPI Definition2012

Target2012

Actual2011

Actual

2012 %varianceto target

2012 %variance2011 actual Comments

stratEgIc aLIgnMEnt

Participationof15-24year olds

Number of Students within the age group Target not predetermined

8,346 6,937 - 20.31% No target was set for this cohort but the increase in the number of students aged 15-24 between2011and2012reflectstheefforttheInstituteismakingtoattractandretainstudentsundertakingpre-apprenticeship,apprenticeship,traineeship,disengagedyouthandVCALprograms.Theactivitygeneratedthrougharrangementswiththirdpartycontractors has also increased training to this cohort.



11,761 9,804 - 19.96% No target was set for this cohort and the increase in students aged 25-64 between 2011and2012reflectsthesignificantefforttakenbyGOTAFEtoincreasethequantumoftrainingdelivered.Someofthisadditionalactivityhasbeengeneratedthroughrelationshipsestablishedwiththirdpartycontractors.

traInIng outcoMEs

ModuleLoadCompletionRate

Scheduledhoursassessedandpassedorsatisfactorilycompleted/ Total scheduled hours reported less hours recorded with Credit Transferandcontinuingstudiesoutcomes.

Target not predetermined

89.90% 84.00% - 7.02% TheInstitutehasimplementedretentionstrategiesatthestudentsupportlevel,whichhaveresultedinasteadyimprovementinretentionandcompletionratesinrecentyears,from 82% in 2008.

StudentSatisfaction Ofthestudentsurveysreturned,theproportionofgraduatessatisfiedwith the overall quality of training.

90.00% 84.00% 87.30% -6.67% -3.78% Alessthandesirableresultfromthesurvey.TheInstitutecontinuestoimplementstrategies to improve the quality of training to students.

FInancIaL ManagEMEnt

Total Cost per Student ContactHour(SCH)

Total funded expenditure (excluding Capital) / Total SCH Target not predetermined

$9.20 $13.71 - -32.90% During2012theInstitutehascontinuedtoimproveproductivityandtodriveamoreefficientdeliverymodel.ThesignificantincreaseinSCH,whilstnotproportionallyincreasing expenditure, has given an excellent result in this category.

WorkingCapitalRatio CurrentAssets/CurrentLiabilities(adjustedtoexcludelong-termbenefitsincurrentliabilitymeasuredatpresentvalue)

> 1.5 : 1 4.81:1 2.88:1 - 67.01% ThisisanexcellentresultforGOTAFEandreflectstheverysoundfinancialresultin2012.The Board are aware that with changes to funding arrangements for the TAFE sector becomingeffectivein2013itisextremelyimportantthatGOTAFEhaveadequatecashreservestomeetoperationalrequirements.

NetOperatingMargin FundedOperatingSurplus/TotalRevenue(exclCapital) 2.36% 19.94% -2.71% 744.92% 835.79% Theextremelysoundperformancein2012largelyresultedfromasignificantincreaseGovernment-fundedtrainingwhilstrestrictingincreasesinexpenditure.

FeeforServiceRevenue Fee for Service Revenue / Total Revenue (excl Capital) 14.78% 11.88% 15.45% -19.62% -23.11% Whilst overall Fee for Service Income exceeded 2012 budget levels and also exceeded incomegeneratedin2011,thesignificantgrowthinGovernmentFundedtraininghasresultedinapercentagereductioninthiscategory.

organIsatIonaL ManagEMEnt

RevenueperEFTStaff TotalRevenue(exclCapital)/AverageEFTStaff $130,802 $153,707 $108,541 17.51% 41.61% ThesignificantgrowthinGovernment-fundedactivity,andwithstaffinglevelsreduced,afarhigherratiohasbeenrecorded.

Student Contact Hours Total number of student contact hours delivered against contracted delivery


6,334,598 4,014,291 - 57.80% This has been an excellent result for GOTAFE with strategies implemented to increase trainingdeliveryactivitybeingverysuccessful.

EnVIronMEnt

EnergyConsumption PercentagechangeinenergyconsumptionforElectricity,Gas,LPG,GreenPowerandHeatingOil:

Electricity -4.0% 1.1% -3.2% 127.50% 134.38% TheInstitutecontinuestoimplementedenergysavingsmeasureshoweverincreasedactivityinthisareahasresultedinincreasedusagelevels.ChangestoGovernmentrequirementshasresultedinthelevelsofGreenPowerbeingpurchasedbytheInstitute.

Gas -4.0% 18.7% -6.3% 567.50% 396.83%

Green Power Electricity 11.4% 27.8% -58.99%

statement of PerformanceFor the year ended 31 december 2012


KPI Definition2012

Target2012

Actual2011

Actual

2012 %varianceto target

2012 %variance2011 actual Comments

stratEgIc aLIgnMEnt



8,346 6,937 - 20.31% No target was set for this cohort but the increase in the number of students aged 15-24 between2011and2012reflectstheefforttheInstituteismakingtoattractandretainstudentsundertakingpre-apprenticeship,apprenticeship,traineeship,disengagedyouthandVCALprograms.Theactivitygeneratedthrougharrangementswiththirdpartycontractors has also increased training to this cohort.



11,761 9,804 - 19.96% No target was set for this cohort and the increase in students aged 25-64 between 2011and2012reflectsthesignificantefforttakenbyGOTAFEtoincreasethequantumoftrainingdelivered.Someofthisadditionalactivityhasbeengeneratedthroughrelationshipsestablishedwiththirdpartycontractors.

traInIng outcoMEs

ModuleLoadCompletionRate

Scheduledhoursassessedandpassedorsatisfactorilycompleted/ Total scheduled hours reported less hours recorded with Credit Transferandcontinuingstudiesoutcomes.


89.90% 84.00% - 7.02% TheInstitutehasimplementedretentionstrategiesatthestudentsupportlevel,whichhaveresultedinasteadyimprovementinretentionandcompletionratesinrecentyears,from 82% in 2008.

StudentSatisfaction Ofthestudentsurveysreturned,theproportionofgraduatessatisfiedwith the overall quality of training.

90.00% 84.00% 87.30% -6.67% -3.78% Alessthandesirableresultfromthesurvey.TheInstitutecontinuestoimplementstrategies to improve the quality of training to students.

FInancIaL ManagEMEnt

Total Cost per Student ContactHour(SCH)

Total funded expenditure (excluding Capital) / Total SCH Target not predetermined

$9.20 $13.71 - -32.90% During2012theInstitutehascontinuedtoimproveproductivityandtodriveamoreefficientdeliverymodel.ThesignificantincreaseinSCH,whilstnotproportionallyincreasing expenditure, has given an excellent result in this category.

WorkingCapitalRatio CurrentAssets/CurrentLiabilities(adjustedtoexcludelong-termbenefitsincurrentliabilitymeasuredatpresentvalue)

> 1.5 : 1 4.81:1 2.88:1 - 67.01% ThisisanexcellentresultforGOTAFEandreflectstheverysoundfinancialresultin2012.The Board are aware that with changes to funding arrangements for the TAFE sector becomingeffectivein2013itisextremelyimportantthatGOTAFEhaveadequatecashreservestomeetoperationalrequirements.

NetOperatingMargin FundedOperatingSurplus/TotalRevenue(exclCapital) 2.36% 19.94% -2.71% 744.92% 835.79% Theextremelysoundperformancein2012largelyresultedfromasignificantincreaseGovernment-fundedtrainingwhilstrestrictingincreasesinexpenditure.

FeeforServiceRevenue Fee for Service Revenue / Total Revenue (excl Capital) 14.78% 11.88% 15.45% -19.62% -23.11% Whilst overall Fee for Service Income exceeded 2012 budget levels and also exceeded incomegeneratedin2011,thesignificantgrowthinGovernmentFundedtraininghasresultedinapercentagereductioninthiscategory.

organIsatIonaL ManagEMEnt

RevenueperEFTStaff TotalRevenue(exclCapital)/AverageEFTStaff $130,802 $153,707 $108,541 17.51% 41.61% ThesignificantgrowthinGovernment-fundedactivity,andwithstaffinglevelsreduced,afarhigherratiohasbeenrecorded.

Student Contact Hours Total number of student contact hours delivered against contracted delivery


6,334,598 4,014,291 - 57.80% This has been an excellent result for GOTAFE with strategies implemented to increase trainingdeliveryactivitybeingverysuccessful.

EnVIronMEnt

EnergyConsumption PercentagechangeinenergyconsumptionforElectricity,Gas,LPG,GreenPowerandHeatingOil:

Electricity -4.0% 1.1% -3.2% 127.50% 134.38% TheInstitutecontinuestoimplementedenergysavingsmeasureshoweverincreasedactivityinthisareahasresultedinincreasedusagelevels.ChangestoGovernmentrequirementshasresultedinthelevelsofGreenPowerbeingpurchasedbytheInstitute.

Gas -4.0% 18.7% -6.3% 567.50% 396.83%

Green Power Electricity 11.4% 27.8% -58.99%


FInancIaLs

INDEPENDENT AUDITOR’S REPORT

TotheMembersofGoulburnOvensInstituteofTechnicalandFurtherEducation

The Financial ReportTheaccompanyingfinancialreportfortheyearended31December2012oftheGoulburnOvensInstituteofTechnicalandFurtherEducationwhichcomprisescomprehensiveoperatingstatement,balancesheet,statementofchangesinequity,cashflowstatement,notescomprisingasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation,andthedeclarationoftheChairoftheBoard,ChiefExecutiveOfficer,andChiefFinanceandAccountingOfficerhasbeenaudited.

The Board Members’ Responsibility for the Financial ReportTheBoardMembers’ofGoulburnOvensInstituteofTechnicalandFurtherEducationareresponsibleforthepreparationandfairpresentationofthefinancialreportinaccordancewithAustralianAccountingStandards,andthefinancialreportingrequirements of the Financial Management Act 1994,andforsuchinternalcontrolastheBoardMembers’determineisnecessarytoenablethepreparationandfairpresentationofthefinancialreportthatisfreefrommaterialmisstatement,whether due to fraud or error.

Auditor’s ResponsibilityAs required by the Audit Act 1994,myresponsibilityistoexpressanopiniononthefinancialreportbasedontheaudit,whichhasbeenconductedinaccordancewithAustralianAuditingStandards.Thosestandardsrequirecompliancewithrelevantethicalrequirementsrelatingtoauditengagementsandthattheauditbeplannedandperformedtoobtainreasonableassuranceaboutwhetherthefinancialreportisfreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialreport.The audit procedures selected depend on judgement, including the assessment of the risks of material misstatement of the financialreport,whetherduetofraudorerror.Inmakingthoseriskassessments,considerationisgiventotheinternalcontrolrelevanttotheentity’spreparationandfairpresentationofthefinancialreportinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.AnauditalsoincludesevaluatingtheappropriatenessoftheaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebytheBoardMembers’,aswellasevaluatingtheoverallpresentationofthefinancialreport.

IbelievethattheauditevidenceIhaveobtainedissufficientandappropriatetoprovideabasisformyauditopinion.




FInancIaLs | 35

INDEPENDENT AUDITOR’S REPORT (continued)

IndependenceTheAuditor-General’sindependenceisestablishedbythe Constitution Act 1975. The Auditor-General is not subject to directionbyanypersonaboutthewayinwhichhispowersandresponsibilitiesaretobeexercised.Inconductingtheaudit,theAuditor-General,hisstaffanddelegatescompliedwithallapplicableindependencerequirementsoftheAustralianaccountingprofession.

OpinionInmyopinion,thefinancialreportpresentsfairly,inallmaterialrespects,thefinancialpositionoftheGoulburnOvensInstituteofTechnicalandFurtherEducationasat31December2012andofitsfinancialperformanceanditscashflowsfortheyearthenendedinaccordancewithapplicableAustralianAccountingStandards,andthefinancialreportingrequirements of the Financial Management Act 1994.

Matters Relating to the Electronic Publication of the Audited Financial ReportThisauditor’sreportrelatestothefinancialreportoftheGoulburnOvensInstituteofTechnicalandFurtherEducationfortheyearended31December2012includedbothintheGoulburnOvensInstituteofTechnicalandFurtherEducation’sannualreportandonthewebsite.TheBoardMembersoftheGoulburnOvensInstituteofTechnicalandFurtherEducationareresponsiblefortheintegrityoftheGoulburnOvensInstituteofTechnicalandFurtherEducation’swebsite.IhavenotbeenengagedtoreportontheintegrityoftheGoulburnOvensInstituteofTechnicalandFurtherEducation’swebsite.Theauditor’sreportrefersonlytothesubjectmatterdescribedabove.Itdoesnotprovideanopiniononanyotherinformationwhichmayhavebeenhyperlinkedto/fromthesestatements.Ifusersofthefinancialreportareconcernedwiththeinherentrisksarisingfrompublicationonawebsite,theyareadvisedtorefertothehardcopyoftheauditedfinancialreporttoconfirmtheinformationcontainedinthewebsiteversionofthefinancialreport.

MELBOURNE Dr Peter Frost22 March 2013 Acting Auditor-General





declaration by Chair of the Board, Chief Executive Officer and Chief Finance and Accounting Officer

WecertifythattheattachedfinancialstatementsfortheGoulburnOvensInstituteofTAFEhasbeenpreparedinaccordancewithStandingDirection4.2oftheFinancial Management Act 1994,applicableFinancialReportingDirectionsissuedunderthatlegislation,AustralianAccountingStandardsandothermandatoryprofessionalreportingrequirements.

Wefurtherstatethat,inouropinion,theinformationsetoutinthecomprehensiveoperatingstatement,balancesheet,statementofchangesinequity,cashflowstatementandnotestoandformingpartofthefinancialreport,presentsfairlythefinancialtransactionsduringtheyearended31December2012andfinancialpositionoftheInstituteasat31December2012.

Atthedateofsigningthisfinancialreport,wearenotawareofanycircumstancethatwouldrenderanyparticularsincludedinthefinancialreporttobemisleadingorinaccurate.TherearereasonablegroundstobelievethattheInstitutewillbeabletopayitsdebtsasandwhenthey became due and payable.

TheChairoftheBoardandtheChiefExecutiveOfficersignthisdeclarationasdelegatesof,andinaccordancewitharesolutionof,theBoardoftheGoulburnOvensInstituteofTAFE.

GeoffreyCobbledickChiefFinanceandAccountingOfficer


Michael TehanChair of the Board


Paul CulpanChiefExecutiveOfficer


FInancIaLs | 37

Comprehensive Operating Statement For the year ended 31 December 2012

Note2012

$’0002011

$’000

COntinuing OperatiOnS

Income from transactions

Government contributions - operating 2(a)(i) 56,775 38,738

Government contributions - capital 2(a)(ii) 1,460 1,768

Sales of goods and services 2(b) 14,656 13,176

Interest 2(c) 766 418

Total fair value of assets and services received free of charge or for nominal consideration 2(d) - -

Other income 2(e) 992 1,097

Total income from transactions 74,649 55,197

Expenses from transactions

Employee benefits 3(a) 47,172 40,083

Depreciation 3(b) 3,835 3,908

Grants and other transfers 3(c) 83 53

Supplies and services 3(d) 6,427 8,684

Other operating expenses 3(e) 5,382 6,384

Total expenses from transactions 62,899 59,112

Net result from transactions (net operating balance) 11,750 (3,915)

Other economic flows included in net result

Net gain/(loss) on non-financial assets 4(a) 195 (325)

Net gain/(loss) on financial instruments and statutory receivables/payables 4(b) (473) (40)

Other gains/(losses) from other economic flows 4(c) 21 (194)

Total other economic flows included in net result (257) (559)

Net result from continuing operations 11,493 (4,474)

Net result 11,493 (4,474)

Other eCOnOmiC FlOwS – Other nOn-Owner ChangeS in equity

Changes in physical asset revaluation surplus 15 8,727 1,881

Total other economic flows – Other non-owner changes in equity 8,727 1,881

Comprehensive result 20,220 (2,593)

The above comprehensive operating statement should be read in conjunction with the accompanying notes.


Balance SheetAs at 31 December 2012

Note2012

$’0002011

$’000

ASSetS

Financial assets

Cash and deposits 5 24,238 11,433

Receivables 6 7,458 3,200

Other financial assets 7 - 4,010

Total financial assets 31,696 18,643

Non-financial assets

Inventories 8 101 115

Property, plant and equipment 9 86,654 79,570

Biological assets 10 113 47

Investment properties 11 1,630 1,580

Other non financial assets 12 510 588

Total non-financial assets 89,008 81,900

Total assets 120,704 100,543

LiABiLitieS

Payables 13 4,494 4,344

Provisions 14 6,417 6,626

Total liabilities 10,911 10,970

Net assets 109,793 89,573

equity

Accumulated surplus/(deficit) 15 (b) 29,518 18,025

Reserves 15 (c) 46,298 37,571

Contributed capital 15 (a) 33,977 33,977

Net worth 109,793 89,573

Commitments for expenditure 17 434 669

Contingent assets and contingent liabilities 19 - -

The above balance sheet should be read in conjunction with the accompanying notes.

FInancIaLs | 39

Statement of Changes in EquityFor the year ended 31 December 2012

Changes due to:

Note

Equity at 1 Jan 2012

$’000

Total comprehensive

result

$’000

Transactions with owners in

their capacity as owners

$’000

Equity at 31 Dec

2012

$’000

accumulated surplus/(deficit) 18,025 11,493 - 29,518

Accumulated surplus/(deficit) at the end of the year 15 18,025 11,493 - 29,518

Contributed capital 33,977 - - 33,977

Contribution by owners at the end of the year 15 33,977 - - 33,977

Physical assets revaluation reserve 37,571 8,727 - 46,298

15 37,571 8,727 - 46,298

Total equity at the end of the year 89,573 20,220 - 109,793

Changes due to:

Note

Equity at 1 Jan 2011

$’000

Total comprehensive

result

$’000

Transactions with owners in

their capacity as owners

$’000

Equity at 31 Dec

2011

$’000

accumulated surplus/(deficit) 22,499 (4,474) - 18,025

Accumulated surplus/(deficit) at the end of the year 15 22,499 (4,474) - 18,025

Contributed capital 33,977 - - 33,977

Contribution by owners at the end of the year 15 33,977 - - 33,977

Physical assets revaluation reserve 35,690 1,881 - 37,571

15 35,690 1,881 - 37,571

Total equity at the end of the year 92,166 (2,593) - 89,573

The above statement of changes in equity should be read in conjunction with the accompanying notes.


Cash Flow StatementFor the year ended 31 December 2012

Note2012

$’0002011

$’000

CaSh FlowS From operating aCtivitieS

Receipts

Government contributions - operating 57,499 40,615

Government contributions - capital 1,397 2,301

User fees and charges received 12,286 13,405

Goods and services tax recovered from the ATO 58 483

Interest received 606 410

Other receipts 3,032 3,046

Total receipts 74,878 60,260

Payments

Payments to suppliers and employees (61,300) (54,643)

Goods and services tax paid to the ATO (2,802) (1,340)

Other payments (83) (53)

Total payments (64,185) (56,036)

Net cash/(used in) operating activities 16 (a) 10,693 4,224

CaSh FlowS From inveSting aCtivitieS

Payments for non-financial assets (2,759) (2,968)

Proceeds from sale of non-financial assets 4,871 683

Net cash provided by/(used in) investing activities 2,112 (2,285)

Net increase (decrease) in cash and cash equivalents 12,805 1,939

Cash and cash equivalents at the beginning of the financial year 11,433 9,494

Cash and cash equivalents at the end of the financial year 5 24,238 11,433

The above cash flow statement should be read in conjunction with the accompanying notes.

FInancIaLs | 41

note 1

statement of significant accounting policies

The annual financial statements represent the audited general purpose financial statements and notes for Goulburn Ovens Institute of TAFE.

1.01 statement of compliance

These general purpose financial statements have been prepared in accordance with the Financial Management Act 1994 (FMA) and applicable Australian Accounting Standards (AAS) which include Interpretations, issued by the Australian Accounting Standards Board (AASB). In particular, they are presented in a manner consistent with the requirements of the AASB 1049 Whole of Government and General Government Sector Financial Reporting.

Where appropriate, those AAS paragraphs applicable to not-for-profit entities have been applied.

Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported.

1.02Basis of accounting preparation and measurement

The accrual basis of accounting has been applied in the preparation of these financial statements whereby assets, liabilities, equity, income and expenses are recognised in the reporting period to which they relate, regardless of when cash is received or paid.

These financial statements are presented in Australian dollars, the functional and presentation currency of the Institute.

In the application of AAS, judgements, estimates and assumptions are required to be made about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on professional judgements derived from historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates.

The estimates and associated assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and also in future periods that are affected by the revision. Judgements made by management in the application of AASs that have significant effects on the financial statements and estimates, with a risk of material adjustments in the next year, are disclosed throughout the notes to the financial statements.

These financial statement have been prepared in accordance with the historical cost convention. Historical cost is based on the fair values of the consideration given in exchange for assets.

Exceptions to the historical cost convention include:

Ì non-financialphysicalassetswhich,subsequenttoacquisition,aremeasured at a revalued amount being their fair value at the date of therevaluationlessanysubsequentaccumulateddepreciationandsubsequent impairment losses. Revaluationsaremadewithsufficientregularity to ensure that the carrying amountsdonotmateriallydifferfrom their fair value;

Ì the fair value of an asset other than land is generally based on its depreciated replacement value;

Ì derivativefinancialinstruments,managed investment schemes, certaindebtsecurities,investmentpropertiesafterinitialrecognition,which are measured at fair value throughprofitandloss;and

Ì available-for-sale investments which are measured at fair value with movementsreflectedinequityuntilthe asset is de-recognised.

The accounting policies set out below have been applied in preparing the financial statements for the year ended 31 December 2012 and the comparative information presented for the year ended 31 December 2011.

The following is a summary of the material accounting policies adopted by the Institute in the preparation of the financial report. The accounting policies have been consistently applied unless otherwise stated.


1.03reporting entity

The financial statements cover the Goulburn Ovens Institute of TAFE as an individual reporting entity. The Institute is a TAFE Provider, established pursuant to an Order made by the Governor in Council under the Education and Training Reform Act 2006 on the recommendation of the responsible Minister.

Its principal address is:

Goulburn Ovens Institute of TAFE Fryers Street Shepparton, VictoriaAustralia 3630

1.04Basis of consolidation The financial statements include all the activities of the Institute. The Institute has no controlled entities.

1.05Events after reporting date

Assets, liabilities, income or expenses arise from past transactions or other past events. Where the transactions result from an agreement between the Institute and other parties, the transactions are only recognised when the agreement is irrevocable at or before balance date.

Adjustments are made to amounts recognised in the financial statements for events which occur after the reporting date and before the date the statements are authorised for issue, where those events provide information about conditions which existed at the reporting date.

Note disclosure is made about events between the reporting date and the date the statements are authorised for issue where the events relate to conditions which arose after the reporting date and which may have a material impact on the results of subsequent years.

1.06goods and services tax (gst)

Income, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the balance sheet.

Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.

Commitments and contingent assets or liabilities are presented on a gross basis.

1.07Income from transactions

Amounts disclosed as income are, where applicable, net of returns, allowances and duties and taxes. Revenue is recognisedforeachoftheInstitute’smajor activities as follows:

Government contributions

Government contributions are recognised as revenue in the period when the Institute gains control of the contributions. Control is recognised upon receipt or notification by relevant authorities of the right to receive a contribution for the current period.

Sale of goods and services

i. Student fees and charges

Student fees and charges revenue is recognised by reference to the percentage of services provided. Where student fees and charges revenue has been clearly received in respect of courses or programs to be delivered in the following year, any non-refundable portion of the fees is treated as revenue in the year of receipt and the balance as Revenue in Advance.

ii. Fee for Service

Fee for service revenue is recognised by reference to the percentage completion of each contract, i.e. in the reporting period in which the services are rendered. Where fee for service revenue of a reciprocal nature has been clearly received in respect of programs or services to be delivered in the following year, such amounts are disclosed as Revenue in Advance.

iii. Revenue from sale of goods

Revenue from sale of goods is recognised by the Institute when:

a. the significant risks and rewards of ownership of the goods have transferred to the buyer;

b. the Institute retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

c. the amount of revenue can be reliably measured;

d. it is probable that the economic benefits associated with the transaction will flow to the Institute and;

e. the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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Interest

Interest from cash, short-term deposits and investments is brought to account on a time proportional basis taking into account interest rates applicable to the financial assets.

Net realised and unrealised gains and losses on the revaluation of investments do not form part of income from transactions, but are reported as part of income from other economic flows in the net result or as unrealised gains and losses taken direct to equity, forming part of the total change in net worth in the comprehensive result.

Other income

i. Dividend revenue Dividend revenue is recognised when the right to receive payment is established.

ii. Rental income

Rental income is recognised on a time proportional basis and is brought to account when the Institute’srighttoreceivetherentalis established.

Fair value of assets and services received free of charge or for nominal consideration

Contributions of resources received free of charge or for nominal consideration are recognised at their fair value when the transferee obtains control over them, irrespective of whether restrictions or conditions are imposed over the use of the contributions. Contributions in the form of services are only recognised when a fair value can be reliably determined and the services would have been purchased if not donated.

1.08Expenses from transactions

Employee benefits

Expenses for employee benefits are recognised when incurred, except for contributions in respect of defined benefit plans.

Retirement benefit obligations

i. Defined contribution plan

Contributions to defined contribution plans are expensed when they become payable.

ii. Defined benefit plans

The amount charged to the comprehensive operating statement in respect of superannuation represents the contributions made by the Institute to the superannuation plan in respect of current services of current Institute staff. Superannuation contributions are made to the plans based on the relevant rules of each plan.

The Institute does not recognise any deferred liability in respect of the plan(s) because the Institute has no legal or constructive obligation to pay future benefits relating to its employees; its only obligation is to pay superannuation contributions as and when they fall due. The Department of Treasury and Finance recognisesanddisclosestheState’sdefined benefit liabilities in its finance report.

Depreciation and amortisation

Depreciation

Depreciation is provided on property, plant and equipment, including freehold buildings but excluding land. Depreciation is calculated on a straight-line basis so as to write off the net cost or other revalued amount of each asset over its expected useful life to its estimated residual value. Leasehold improvements are depreciated over the period of the lease or estimated useful life, whichever is the shorter, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period.

Depreciation methods and rates used for each class of depreciable assets are:

Class of Asset Method Rate / Rates

Buildings Straight 2-4%

Plant and equipment

Straight 15.0%

Computer and electronic equipment

Straight 15-34%

Furniture and fittings

Straight 10.0%

Motor vehicles Straight 25.0%

Theassets’residualvaluesandusefullives are reviewed and adjusted if appropriate on an annual basis. There has been no change in the methodology and rates for 2012.

Interest Expense

Interest expense is recognised as expenses in the period in which they are incurred.

Interest expense includes interest on bank overdrafts and short term and long term borrowings, amortisation of discounts or premiums relating to borrowings, amortisation of ancillary costs incurred in connection with the arrangement of borrowings and finance lease charges.


Grants and other transfers

Grants and other transfers to third parties are recognised as an expense in the reporting period in which they are paid or payable.

Other operating expenses

Supplies and servicesSupplies and services expenses are recognised as an expense in the reporting period in which they are incurred. The carrying amounts of any inventories held-for-distribution are expensed when distributed.

Fair value of assets and services provided free of charge or for nominal consideration Resources provided free of charge or for nominal consideration are recognised at their fair value.

1.09other economic flows included in net result

Other economic flows measure the change in volume or value of assets or liabilities that do not result from transactions.

Net gain/(loss) on non-financial assets

Net gain/(loss) on non-financial assets and liabilities includes realised and unrealised gains and losses from revaluations, impairments, and disposals of all physical assets and intangible assets.

Disposal of non-financial assets

Any gain or loss on disposal of non-financial assets is recognised at the date control of the asset is passed to the buyer and is determined after deducting from the proceeds the carrying value of the asset at the time.

Gain/(loss) arising from fair value changes of biological assets

Biological assets are measured at fair value, and the resultant gain/(loss) is reported as an other economic flow.

Impairment of assets

Goodwill and intangible assets with indefinite useful lives (and intangible assets not yet available for use) are tested annually for impairment (i.e. as to whether their carrying value exceeds their recoverable amount and so require write downs).

All other assets are assessed annually for indications of impairment.

If there is an indication of impairment, the assets concerned are tested as to whether their carrying value exceeds their possible recoverable amount. Whereanasset’scarryingvalueexceedsits recoverable amount, the difference is written off by a charge to the comprehensive operating statement, except to the extent that the write down can be debited to an asset revaluation reserve amount applicable to that class of asset.

If there is an indication that there has been a change in the estimate of an asset’srecoverableamountsincethelast impairment loss was recognised, the carrying amount shall be increased to its recoverable amount. This reversal of the impairment loss occurs only to the extentthattheasset’scarryingamountdoes not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised in prior years.

It is deemed that, in the event of the loss or destruction of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made.

The recoverable amount for most assets is measured at the higher of depreciated replacement cost and fair value less costs to sell. Recoverable amount for assets held primarily to generate net cash flows is measured at the higher of the present value of future cash flows expected to be obtained from the asset and fair value less costs to sell. It is deemed that, in the event of the loss of an asset, the future economic benefits arising from the use of the asset will be replaced unless a specific decision to the contrary has been made.

Net gain/(loss) on financial instruments

Net gain/(loss) on financial instruments includes realised and unrealised gains and losses from revaluations of financial instruments that are designated at fair value through profit or loss or held-for-trading, impairment and reversal of impairment for financial instruments at amortised cost, and disposals of financial assets.

Revaluations of financial instruments at fair valueThe revaluation gain/(loss) on financial instruments at fair value excludes dividends or interest earned on financial assets, which is reported as part of income from transactions.

Impairment of financial assetsBad and doubtful debts are assessed on a regular basis. Those bad debts considered as written off by mutual consent are classified as a transaction expense. The allowance for doubtful receivables and bad debts not written off by mutual consent are adjusted as ‘other economicflows’.

Other gains/(losses) from other economic flows

Other gains/(losses) from other economic flows include the gains or losses from reclassifications of amounts from reserves and/or accumulated surplus to net result, and from the revaluation of the present value of the long service leave liability due to changes in the bond interest rates.

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1.10Financial assets

Cash and deposits

Cash and deposits, including cash equivalents, comprise cash on hand and cash at bank, deposits at call and those highly liquid investments with an original maturity of three months or less, which are held for the purpose of meeting short term cash commitments rather than for investment purposes, and which are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.

For cash flow statement presentation purposes, cash and cash equivalents includes bank overdrafts, which are included as borrowings on the balance sheet.

Receivables

Receivables consist of:

Ì statutory receivables, which include predominantly amounts owing from the Victorian Government and GST input tax credits recoverable; and

Ì contractual receivables, which include mainlydebtorsinrelationtogoodsand services, and accrued investment income.

Receivables that are contractual are classified as financial instruments. Statutory receivables are not classified as financial instruments.

Receivables are recognised initially at fair value and subsequently measured at amortised cost, using the effective interest method, less an allowance for impairment.

A provision for doubtful receivables is made when there is objective evidence that the debts may not be collected and bad debts are written off when identified.

Investments and other financial assets

Investments are classified in the following categories:

Ì financialassetsatfairvaluethroughprofitorloss,

Ì loans and receivables, and Ì availableforsalefinancialassets.

The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition.

Any dividend or interest earned on the financial asset is recognised in the consolidated comprehensive operating statement as a transaction.

De-recognition of financial assets

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is de-recognised when:

Ì therightstoreceivecashflowsfromthe asset have expired; or

Ì theInstituteretainstherighttoreceivecashflowsfromtheasset,buthasassumedanobligationtopaythem in full without material delay to athirdpartyundera‘passthrough’arrangement; or

Ì theInstitutehastransferreditsrightstoreceivecashflowsfromtheassetand either:

a. hastransferredsubstantiallyalltherisks and rewards of the asset, or

b. has neither transferred nor retainedsubstantiallyalltherisksand rewards of the asset, but has transferred control of the asset.

Where the Institute has neither transferred nor retained substantially all the risks and rewards or transferred control, the asset is recognised to the extentoftheInstitute’scontinuinginvolvement in the asset.

At the end of each reporting period, the Institute assesses whether there is objective evidence that a financial asset or group of financial assets is impaired. Objective evidence includes financial difficulties of the debtor, default payments, debts which are more than 60 days overdue, and changes in debtor credit ratings. All financial instrument assets, except those measured at fair value through profit or loss, are subject to annual review for impairment.

Bad and doubtful debts for financial assets are assessed on a regular basis. Those bad debts considered as written off by mutual consent are classified as a transaction expense. Bad debts not written off by mutual consent and the allowance for doubtful receivables are classifiedas‘othereconomicflows’inthe net result.

The amount of the allowance is the differencebetweenthefinancialasset’scarrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. In assessing impairment of statutory (non-contractual) financial assets, which are not financial instruments, professional judgement is applied in assessing materiality using estimates, averages and other computational methods in accordance with AASB 136 Impairment of Assets.


1.11Leases

A lease is a right to use an asset for an agreed period of time in exchange for payment.

Leases are classified at their inception as either operating or finance leases based on the economic substance of the agreement so as to reflect the risks and rewards incidental to ownership. Leases of property, plant and equipment are classified as finance infrastructure leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership from the lessor to the lessee. All other leases are classified as operating leases.

Finance Leases

Institute as lessor Amounts due from lessees under finance leases are recorded as receivables. Finance lease receivables are initially recorded at amounts equal to the present value of the minimum lease payments receivable plus the present value of any unguaranteed residual value expected to accrue at the end of the lease term. Finance lease receipts are apportioned between periodic interest income and reduction of the lease receivable over the term of the lease in order to reflect a constant periodic rate of return on the net investment outstanding in respect of the lease.

Institute as lessee At the commencement of the lease term, finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the lease property or, if lower, the present value of the minimum lease payment, each determined at the inception of the lease. The lease asset is depreciated over the shorter of the estimated useful life of the asset or the term of the lease.

Operating Leases

Institute as lessor Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease.

Institute as lesseeOperating lease payments, including any contingent rentals, are recognised as an expense in the comprehensive operating statement on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern of the benefits derived from the use of the leased asset. The leased asset is not recognised in the balance sheet.

1.12non-Financial assets

Inventories

Inventories include goods and other property held either for sale or for distribution at no or nominal cost in the ordinary course of business operations. It includes land held-for-sale and excludes depreciable assets.

Inventories held-for-distribution are measured at cost, adjusted for any loss of service potential. All other inventories, including land held for sale, are measured at the lower of cost and net realisable value.

The basis used in assessing loss of service potential for inventories held-for-distribution include current replacement cost and technical or functional obsolescence. Technical obsolescence occurs when an item still functions for some or all of the tasks it was originally acquired to do, but no longer matches existing technologies. Functional obsolescence occurs when an item no longer functions the way it did when it was first acquired.

Cost is assigned to land for sale (undeveloped, under development and developed) and to other high value, low volume inventory items on a specific identification of cost basis.

Cost for all other inventory is measured on the basis of weighted average cost.

Inventories acquired for no cost or nominal consideration are measured at current replacement cost at the date of acquisition.

Non-current physical assets classified as held-for-sale, including disposal group assets

Non-financial physical assets (including disposal group assets) are treated as current and classified as held for sale if their carrying amount will be recovered through a sale transaction rather than through continuing use.

This condition is regarded as met only when:

Ì the asset is available for immediate useinthecurrentcondition;and

Ì the sale is highly probable and theasset’ssaleisexpectedtobecompleted within twelve months fromthedateofclassification.

These non-financial physical assets, related liabilities and financial assets are measured at the lower of carrying amount and fair value less costs to sell, and are not subject to depreciation or amortisation.

Property, plant and equipment

All non-financial physical assets, are measured initially at cost and subsequently revalued at fair value less accumulated depreciation and impairment.

The initial cost for non-financial physical assets under a finance lease is measured at amounts equal to the fair value of the leased asset or, if lower, the present value of the minimum lease payments, each determined at the inception of the lease.

Where an asset is received for no or nominal consideration, the cost is theasset’sfairvalueatthedateofacquisition.

FInancIaLs | 47

Non-financial physical assets such as national parks, other Crown land and heritage assets are measured at fair valuewithregardtotheproperty’shighest and best use after due consideration is made for any legal or constructive restrictions imposed on the asset, public announcements or commitments made in relation to the intended use of the asset. Theoretical opportunities that may be available in relation to the asset are not taken into account until it is virtually certain that the restrictions will no longer apply.

The fair value of cultural assets and collections, heritage assets and other non-financial physical assets that the State intends to preserve because of their unique historical, cultural or environmental attributes, is measured at the replacement cost of the asset less, where applicable, accumulated depreciation (calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset) and any accumulated impairment. These policies and any legislative limitations and restrictions imposed on their use and/or disposal may impact their fair value.

The fair value of infrastructure systems and plant, equipment and vehicles, is normally determined by reference to theasset’sdepreciatedreplacementcost, or where the infrastructure is held by a for profit entity, the fair value may be derived from estimates of the present value of future cash flows. For plant, equipment and vehicles, existing depreciated historical cost is generally a reasonable proxy for depreciated replacement cost because of the short lives of the assets concerned.

Certain assets are acquired under finance leases, which may form part of a service concession arrangement.

The cost of constructed non-financial physical assets includes the cost of all materials used in construction, direct labour on the project, and an appropriate proportion of variable and fixed overheads.

Where an asset is received for no or nominal consideration, the cost is theasset’sfairvalueatthedateofacquisition. For the accounting policy on impairment of non-financial physical assets refer to Note 1.09 on Impairment of non-financial assets.

Leasehold improvements

The cost of a leasehold improvements is capitalised as an asset and depreciated over the remaining term of the lease or the estimated useful life of the improvements, whichever is the shorter.

Restrictive nature of cultural and heritage assets, Crown land and infrastructures

Certain agencies hold cultural assets, heritage assets, Crown land and infrastructure, which are deemed worthy of preservation because of the social rather than financial benefits they provide to the community. Consequently, there are certain limitations and restrictions imposed on their use and/or disposal.

Non financial physical assets constructed by the Institute

The cost of non-financial physical assets constructed by the Institute includes the cost of all materials used in construction, direct labour on the project, and an appropriate proportion of variable and fixed overheads.

Revaluations of non-current physical assets

Non-current physical assets measured at fair value are revalued in accordance with FRDs issued by the Minister for Finance. This revaluation process normally occurs every five years, based upontheasset’sGovernmentPurposeClassification, but may occur more frequently if fair value assessments indicate material changes in values. Revaluation increases or decreases arise fromdifferencesbetweenanasset’scarrying value and fair value.

Revaluation increases are credited directly to equity in the revaluation reserve, except to the extent that an increase reverses a revaluation decrease in respect of that class of property, plant and equipment, previously recognised as an expense (other economic flows) in the net result, the increase is recognised as income (other economic flows) in determining the net result.

Revaluation decreases are recognised immediately as expenses (other economic flows) in the net result, except to the extent that a credit balance exists in the revaluation reserve in respect of the same class of property, plant and equipment, they are debited to the revaluation reserve.

Revaluation increases and revaluation decreases relating to individual assets within a class of property, plant and equipment are offset against one another within that class but are not offset in respect of assets in different classes.

Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.

Biological assets

Bloodstock is measured at fair value less estimated point of sale costs.

Investment properties

Investment properties represent properties held to earn rentals or for capital appreciation or both. Investment properties exclude properties held to meet service delivery objectives of the Institute.

Investment properties are initially recognised at cost. Costs incurred subsequent to initial acquisition are capitalised when it is probable that future economic benefits in excess of the originally assessed performance of the asset will flow to the Institute.

Rental income from the leasing of investment properties is recognised in the statement of comprehensive income on a straight-line basis, over the lease term.


1.13Liabilities Payables

Payables consist of:

Ì contractual payables, such as accounts payable, and unearned income including deferred income from concession arrangements. Accountspayablerepresentliabilitiesfor goods and services provided to theInstitutepriortotheendofthefinancialyearthatareunpaid,andarisewhentheInstitutebecomesobliged to make future payments in respect of the purchase of those goods and services; and

Ì statutory payables, such as goods and servicestaxandfringebenefitstaxpayables.

Contractual payables are classified as financial instruments and categorised as financial liabilities at amortised cost. Statutory payables are recognised and measured similarly to contractual payables, but are not classified as financial instruments and not included in the category of financial liabilities at amortised cost, because they do not arise from a contract

Provisions Provisions are recognised when the Institute has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cashflows estimated to settle the present obligation, its carrying amount is the present value of those cashflows.

Employee benefits

The calculation of employee benefits includes all relevant on-costs and are calculated as follows at reporting date.

i. Wages and salaries, and annual leaveLiabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12 months of the reporting date are recognised in the provision for employee benefits in respect of employee services up to the reporting date, classified as current liabilities and measured at their nominal values.

Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulated sick leave expected to be settled within 12 months of the reporting date are recognised in the provision for employee benefits in respect of employee services up to the reporting date, classified as current liabilities and measured at their nominal values.

Liabilities that are not expected to be settled within 12 months of the reporting date are recognised in the provision for employee benefits as current liabilities, measured at present value of the amounts expected to be paid when the liabilities are settled using the remuneration rate expected to apply at the time of settlement.

ii. Long service leave Liability for long service leave (LSL) is recognised in the provision for employee benefits.

Current Liability - unconditional LSL representing 7 years is disclosed as a current liability even when the Institute does not expect to settle the liability within 12 months because it will not have the unconditional right to defer settlement of the entitlement should an employee take leave within 12 months.

The components of this current liability are measured at:

Ì present value - component that is notexpectedtobesettledwithin12 months.

Ì nominal value - component that is expectedtobesettledwithin12months.

Non-current liability - conditional LSL representing less than 7 years is disclosed as a non - current liability. There is an unconditional right to defer settlement of the entitlement until the employee has completed the requisite years of service.

This non-current LSL liability is measured at present value. Gain or loss following revaluation of the present value of non-current LSL liability due to changes in bond interest rates is recognised as an other economic flow (refer to Note 4(c)).

iii. Termination benefits Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The Institute recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after balance sheet date are discounted to present value.

Employee benefits on-costs

Employee benefits on-costs (payroll tax, workers compensation, superannuation, annual leave and long service leave accrued while on LSL taken in service) are recognised separately from provision for employee benefits.

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Performance Payments

Performance payments for TAFE Executive Officers are based on a percentage of the annual salary package provided under the contract of employment. A liability is provided for under the term of the contracts at reporting date and paid out in the next financial year.

Onerous contracts

An onerous contract is considered to exist where the Institute has a contract under which the unavoidable cost of meeting the contractual obligations exceed the economic benefits estimated to be received. Present obligations arising under onerous contracts are recognised as a provision to the extent that the present obligation exceeds the economic benefits estimated to be received.

1.14commitments

Commitments include those operating, capital and other outsourcing commitments arising from non-cancellable contractual or statutory sources and are disclosed at their nominal value and inclusive of the GST payable.

1.15contingent assets and contingent liabilities

Contingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed by way of a note (refer note 19) and, if quantifiable, are measured at nominal value. Contingent assets and liabilities are presented inclusive of the GST receivable or payable respectively.

1.16Equity

Contributed capital

Funding that are in the nature of contributions by the State government are treated as contributed capital when designated in accordance with UIG Interpretation 1038 Contribution by Owners Made to Wholly-Owned Public Sector Entities. Commonwealth capital funds are not affected and are treated as income.

1.17Foreign currency translations

Functional and presentation currency

The functional currency of each group entity is measured using the currency of the primary economic environment in which that entity operates. The Institute’sfinancialstatementsarepresented in Australian dollars which istheInstitute’sfunctionalandpresentation currency.

Transactions and balances

Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the transaction. Foreign currency monetary items are translated at the year end exchange rate. Non-monetary items measured at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date when fair values were determined.

Exchange differences arising on the translation of monetary items are recognised in the comprehensive operating statement in the period in which they arise, except where deferred in equity as a qualifying cash flow or net investment hedge.

Exchange difference arising on the translation of non-monetary items are recognised directly in equity to the extent that the gain or loss is directly recognised in equity, otherwise the exchange difference is recognised in the comprehensive operating statement

1.18Materiality

In accordance with Accounting Standard AASB1031‘Materiality’,accountingpolicies need only be identified in the summary of accounting policies wheretheyareconsidered‘material’.Accounting policies will be considered material if their omission, misstatement or non-disclosure has the potential, individually or collectively, to:

a. influencetheeconomicdecisionsof users taken on the basis of the financialreport;and

b. affectthedischargeofaccountabilityby the management or governing bodyoftheentity.

1.19rounding of amounts

Amounts in the financial report have been rounded to the nearest thousand dollars, unless otherwise stated.

1.20comparative information When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

1.21change in accounting policy

There was no change in accounting policy for the financial year ending 31 December 2012.


1.22new accounting standards and interpretations

Certain new accounting standards and interpretations have been published that are not mandatory for the 31 December 2012 reporting period. As at 31 December 2012 the following standards and interpretations (applicable to the Institute) had been issued but were not mandatory for financial year ending 31 December 2012. The Institute has not, and does not intend to, adopt these standards early.

Amending pronouncements and errata Standards affected Outline of amendment

Application date of standard

Impact on financial statements

AASB 9 Financial Instruments.

AASB 139 Financial Instruments: Recognition and Measurement

This standard simplifies requirements for the classification and measurement of financial assets resulting from Phase 1 of the IASB’s project to replace IAS 39 Financial Instruments: Recognition and Measurement.

Reporting periods beginning on 1 January 2013.

Detail of impact is still being assessed.

AASB 1053 Application of Tiers of Australian Accounting Standards.

This standard establishes a differential financial reporting framework consisting of two tiers of reporting requirements for preparing general purpose financial statements.

Reporting periods beginning on 1 July 2013.

The Victorian Government is currently considering the impacts of reduced disclosure requirements (RDRs) for certain public sector entities and has not decided if RDRs will be implemented in the Victorian public sector.

AASB 2010 2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements.

These amendments introduce reduced disclosure requirements for application by certain types of entities.

Reporting periods beginning on 1 July 2013.

The amendments do not affect financial measurement or recognition and are not expected to have any impact on financial result or position.

AASB 2010 7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010)

AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121, 127, 128, 131, 132, 136, 137, 139, 1023 and 1038 and Interpretations 2, 5, 10, 12, 19 and 127

This relates to the introduction of AASB 9 Financial instruments.


Detail of impact is still being assessed.

AASB 2011 2 Amendments to Australian Accounting Standards arising from the Trans Tasman Convergence Project – Reduced Disclosure Requirements

AASB 101 and AASB 1054

The objective of this amendment is to include some additional disclosure from the Trans Tasman Convergence Project and to reduce disclosure requirements for entities preparing general purpose financial statements under Australian Accounting Standards – Reduced Disclosure Requirements (RDRs)


The Victorian Government is currently considering the impacts of RDRs and has not decided if they will be implemented in the Victorian public sector.

FInancIaLs | 51

Note 2

Income from transactions

2012 $’000

2011 $’000

(a) GraNts aNd other traNsfers (other thaN coNtrIbutIoNs by owNers)

Government financial assistance

(i) Government contributions - operating

Commonwealth government recurrent 68 105

State government recurrent 55,391 35,777

Other contributions 1,316 2,856

Total government contributions - operating 56,775 38,738

(ii) Government contributions - capital

Commonwealth capital 900 976

State capital 560 792

Total government contributions - capital 1,460 1,768

Total government financial assistance 58,235 40,506

(b) sales of Goods aNd servIces

Student fees and charges 4,312 3,334

Rendering of services:

Fee for service - Government 4,623 4,926

Fee for service - International operations - onshore 52 -

Fee for service - Other 3,972 3,341

Total rendering of services 8,647 8,267

Other non-course fees and charges:

Sale of goods 1,697 1,575

Total other fees and charges 1,697 1,575

Total revenue from sale of goods and services 14,656 13,176

(c) INterest

Interest from financial assets not at fair value through P/L:

Interest on bank deposits 766 418

Total interest revenue from financial assets not at fair value through P/L 766 418

Net interest income 766 418


2012 $’000

2011 $’000

(d) Fair value oF assets and services received Free oF charge or For nominal consideration:

Assets

Plant and equipment - -

Total Assets - -

Total fair value of assets and services received free of charge or for nominal consideration - -

(e) other income

Rental revenue

Investment properties 152 148

Other 200 66

Total rental revenue 352 214

Donations, bequests and contributions 13 10

Scholarships and prizes - -

Other revenue 627 873

Total other income 992 1,097

note 3

expenses from transactions

2012 $’000

2011 $’000

(a) employee beneFits

Salaries, wages, overtime and allowances 41,853 34,169

Superannuation 2,864 2,894

Payroll tax 1,715 1,760

Worker's compensation 242 313

Long service leave (98) 271

Annual leave (119) 273

Termination benefits 543 189

Other 172 214

Total employee benefits 47,172 40,083

FInancIaLs | 53

2012 $’000

2011 $’000

(b) Depreciation

Depreciation of non-current assets

Buildings 1,836 1,835

Plant and equipment 1,299 1,345

Motor vehicles 700 728

Total depreciation 3,835 3,908

Total depreciation 3,835 3,908

(c) Grants anD other transfers (other than contributions by owners)

Grants and subsidies apprentices and trainees 83 53

Total grants and other transfers 83 53

(D) supplies anD services

Purchase of supplies and consumables 2,253 2,530

Communication expenses 836 963

Contract and other services 1,157 1,257

Cost of goods sold/distributed (ancillary trading) 417 741

Repairs and maintenance 982 1,297

Fees and charges 782 1,896

Total supplies and services 6,427 8,684

(e) other operatinG expenses

General Expenses

Marketing and promotional expenses 501 829

Occupancy expenses 1,096 1,055

Audit fees and services 79 71

Staff development 238 520

Travel and motor vehicle expenses 1,088 1,313

Motor vehicle taxes 53 58

Other expenses 807 1,039

Insurances 136 133

Total other operating expenses 3,998 5,018

Operating lease rental expenses

Minimum lease payments 259 290

Total operating lease rental expenses 259 290

Subtotal 4,257 5,308

Equipment below capitalisation threshold 1,125 1,076

Total other operating expenses 5,382 6,384


note 4

other economic flows included in net result

2012 $’000

2011 $’000

(a) nEt gaIn/(Loss) on non-FInancIaL assEts (IncLudIng PPE and IntangIBLE assEts)

Revaluation of non-current physical assets 50 65

Net gain/(loss) arising from changes in fair value less estimated point-of-sale costs of biological assets 78 (22)

Net gain/(loss) on disposal of physical assets 67 (368)

Totalnetgain/(loss)onnon-financialassetsandliabilities 195 (325)

(B) nEt gaIn/(Loss) on FInancIaL InstruMEnts and statutory rEcEIVaBLEs / PayaBLE oF:

Net gain/(loss) arising from revaluation of financial assets at fair value through profit and loss (473) (40)

Totalnetgain/(loss)onfinancialinstruments (473) (40)

(c) otHEr gaIns/(LossEs) FroM otHEr EconoMIc FLoWs

Net gain/(loss) arising from revaluation of long service leave liability 21 (194)

Totalothergains/(losses)fromothereconomicflows 21 (194)

note 5

cash and cash equivalents2012 $’000

2011 $’000

Cash at bank and on hand 5,997 7,854

Australian currency Deposits - at call 18,241 3,579

Totalcashandcashequivalents 24,238 11,433

The above figures are reconciled to cash at the end of the financial year as shown in the statement of cash flows as follows:

(a) rEconcILEd to casH at tHE End oF tHE yEar

Balances as above 24,238 11,433

Balance as per cash flow statement 24,238 11,433

(B) casH at BanK and on Hand

These are non-interest bearing.

(c) dEPosIts at caLL

The deposits are bearing floating interest rates between 3.6% and 5.5% (2011 - 4.0% and 6.1%).

FInancIaLs | 55

note 6

receivables

2012 $000

2011 $000

currEnt rEcEIVaBLEs

Contractual

Trade receivables 1 2,468 1,941

Provision for doubtful contractual receivables(a) (See also Note 6(a) below) (577) (104)

Revenuereceivable

Amount receivable from:

Victorian Government bodies 4,929 972

Other parties 168 82

Total contractual 6,988 2,891

Statutory

GST receivable from ATO 470 309

Total statutory 470 309

Totalcurrentreceivables 7,458 3,200

Totalreceivables 7,458 3,200

1 The average credit period on sales of goods and services is 30 days. Debts attributable to Victorian Government bodies that are outstanding greater than 30 days may be charged penalty interest in accordance with the Victorian Government’s Fair Payments Policy. A provision has been made in 2012 for estimated irrecoverable amounts from the sale of goods and services, based on past default experience. The $473,000 increase was recognised in the operating result for the current financial year.

(a) MoVEMEnt In tHE ProVIsIon For douBtFuL contractuaL rEcEIVaBLEs

Balance at beginning of the year (104) (64)

Reversal of unused provision recognised in the net result - -

Increase in provision recognised in the net result (473) (40)

Balance at end of the year (577) (104)

(B) agEIng anaLysIs oF contractuaL rEcEIVaBLEs

Please refer to Note 27(iv) for the ageing analysis of contractual receivables.

(c) naturE and ExtEnt oF rIsK arIsIng FroM contractuaL rEcEIVaBLEs

Please refer to Note 27 for the nature and extent of credit risk arising from contractual receivables.


Note 7

Other financial assets

2012 $’000

2011 $’000

CurreNt Other fiNaNCial assets

Revenue receivable from sale of Christensen Lane - 4,010

Total current other financial assets - 4,010

Total current other financial assets - 4,010

Land comprising the Institute’s rural campus at Christensen Lane, Wangaratta was sold on 21 December, 2011 and revalued to the sale price ($4,010,000) less costs to sell ($78,909), the revaluation increment ($1,881,091) being shown in the comprehensive operating statement under “Changes in physical asset revaluation surplus”, and represented the profit on the sale.

The full proceeds from the sale of the Christensen Lane land were received on 9 March 2012, the settlement date specified in the Contract of Sale.

Note 8

inventories2012

$’0002011

$’000

CurreNt

Supplies and consumables - at cost 13 17

Work in progress - at cost 70 71

Inventories held-for-sale

at cost 18 27

Total current inventories 101 115

Note 9

Property, plant and equipment

Land BuildingsConstruction

in ProgressPlant &

EquipmentMotor

Vehicles Total

At 1 January 2011 $’000 $’000 $’000 $’000 $’000 $’000

Cost 410 17,657 283 - - 18,350

Valuation 13,294 73,234 - 13,699 2,942 103,169

Accumulated depreciation - (28,900) - (9,946) (818) (39,664)

Net book amount 13,704 61,991 283 3,753 2,124 81,855

FInancIaLs | 57

Land BuildingsConstruction

in ProgressPlant &

EquipmentMotor

Vehicles Total

Year ended 31 December 2011 $’000 $’000 $’000 $’000 $’000 $’000

Opening net book amount 13,704 61,991 283 3,753 2,124 81,855

Additions - 29 1,064 263 1,471 2,827

Disposals - (503) - - (701) (1,204)

Depreciation expense 1 - (1,835) - (1,345) (728) (3,908)

Transfers to/from construction in progress - 531 (531) - - -

Closing net book amount 13,704 60,213 816 2,671 2,166 79,570

At 31 December 2011

Cost 410 18,217 816 - - 19,443

Valuation 13,294 72,475 - 13,884 3,117 102,770


Net book amount 13,704 60,213 816 2,671 2,166 79,570

Year ended 31 December 2012

Opening net book amount 13,704 60,213 816 2,671 2,166 79,570

Additions - 13 1,320 468 1,112 2,913

Disposals - - - (40) (681) (721)

Net revaluation increments/ decrements (901) 9,628 - - - 8,727

Depreciation expense 1 - (1,836) - (1,299) (700) (3,835)

Transfers to/from construction in progress - 1,252 (1,252) - - -

Closing net book amount 12,803 69,270 884 1,800 1,897 86,654

At 31 December 2012

Cost - - 884 - - 884

Valuation 12,803 112,610 - 14,184 2,888 142,485


Net book value at the end of the financial year 12,803 69,270 884 1,800 1,897 86,654

Footnote: 1 TheusefullivesofassetsasstatedinNote1areusedinthecalculationofdepreciationasshowninnote3(b).

a. Valuationsoflandandbuildings ThevaluationoflandandbuildingswasundertakenbytheValuer-GeneralVictoria.Exceptforapropertycomprisinglandand

buildingsatWangaratta,forwhichinthevaluer’sopinionthereisanactiveandliquidmarketandsovaluedatfairmarketvalue,thefairvaluesaredeterminedinaccordancewiththefollowingcriteria.Thevaluationofbuildingsisatfairvaluebasedonthegoingconcernpresumptionandusingtheassetsdepreciatedreplacementcost.Thevaluationoflandisatfairvaluebasedonthehighestandbestuseofthelandwithconstraintsbasedontheexistenceofsubstantialbuildingsandotherimprovements.Thevaluationswere completed as at 31 December 2012.

b. Plantandequipmentcarriedatfairvalue AvaluationofplantandequipmentwasundertakenbytheInstitutemanagementtodetermineitsfairvalue.Theeffectivedateofthe

valuationis31December2012.c. Non-currentassetspledgedassecurity TheInstitutehasnonon-currentassetspledgedassecurity. d. Restricted assets TheInstitutehasnorestrictedassets.


note 10

Biological assets

BIoLogIcaL assEts - anIMaLs

Nature - Mares

Activities-Equine studies

2012 $’000

2011 $’000

BEarEr assEts

Mature assets

Mares 113 47

Total bearer assets 113 47

Qty Qty

Quantities

Mares 2 10

Total quantity 2 10

There were no reportable outputs arising from the mares for the years ended 31 December.

2012 $’000

2011 $’000

BIoLogIcaL assEts - rEconcILIatIon

Reconciliation of changes in carrying amount of biological assets

Carrying amount at 1 January 47 114

Increases due to:

Purchases - 5

Net gain arising from change in fair value 78 -

Decreases attributable to:

Sales (12) (50)

Net loss arising from change in fair value - (22)

Carrying amount at 31 December 113 47

FInancIaLs | 59

Note 11

Investment properties2012

$’0002011

$’000

At FAIr vAlue

Opening balance at 1 January 1,580 1,515

Net gain/ (loss) from fair value adjustments 50 65

Closing balance at 31 December 1,630 1,580

a) Amounts recognised in profit and loss for investment properties

Rental income 152 148

Other income - insurance recovery 2 -

Direct operating expenses (rent generating properties) (5) -

Total recognised in profit and loss 149 148

b) Valuation basisInvestment properties were revalued to fair value by a registered independent valuer as at 31 December 2012 in accordance with AASB 140.

Note 12

Other non-financial assets2012

$’0002011

$’000

CurreNt Other NON-FINANCIAl Assets

Prepayments 510 588

Total current other non-financial assets 510 588


Totalothernon-financialassets 510 588

note 13

Payables2012

$’0002011

$’000

currEnt

Contractual

Supplies and services 3,397 3,683

Other employee entitlements payable within 12 months 220 23

Revenue in advance 321 252

3,938 3,958

Statutory

Taxes Payable 556 386

Total current payables 4,494 4,344

Total payables 4,494 4,344

ThecarryingamountsoftheInstitute’spayablesaredenominatedinAustraliandollars.

Notes 1. The average credit period is 30 days. No interest is charged on payables. 2. ForananalysisofthesensitivityofpayablestoforeigncurrencyriskrefertoNote27.

Maturity analysis of contractual payables Refer to Note 27 for maturity analysis of contractual payables.

FInancIaLs | 61

note 14

Provisions2012

$’0002011

$’000

currEnt ProVIsIons ExPEctEd to BE sEttLEd WItHIn 12 MontHs

Employee benefits

Annual leave 1,913 1,955

Long service leave 104 167

Performance payments 30 -

Totalcurrentprovisionsexpectedtobesettledwithin12months 2,047 2,122

currEnt ProVIsIons ExPEctEd to BE sEttLEd aFtEr 12 MontHs

Employee benefits

Annual leave 174 251

Long service leave 3,114 3,121

Totalcurrentprovisionsexpectedtobesettledafter12months 3,288 3,372

Totalcurrentprovisions 5,335 5,494

non-currEnt

Employee benefits

Long service leave 1,082 1,132

Totalnon-currentprovisions 1,082 1,132

Totalprovisions 6,417 6,626

Therequirementtomakeprovisionforthecostofannualleaveandlongserviceleavearisesfromemployees’entitlementasspecifiedintheir relevant workplace employment award.Timing of the resulting outflows is largely determined by the management approval of applications by employees to take the respective leave up to their recorded leave balance.Payment of annual leave and long service leave is made from cash reserves.The calculation and classification methodology of the provisions is outlined in Note 1.13

MoVEMEnts In ProVIsIons

Movementsineachclass,otherthanemployeeprovisionsduringthefinancialyeararesetout below:

Carrying amount at start of year 6,626 5,927

Additional provisions recognised 787 1,497

Amounts used (996) (798)

Carrying amount at end of year 6,417 6,626


Note 15

Equity2012

$’0002011

$’000

(a) CoNtributEd Capital

Balance at 1 January 33,977 33,977

Balance at 31 December 33,977 33,977

(b) aCCumulatEd surplus / (dEfiCit)


Net result for the year 11,493 (4,474)


(C) rEsErvEs

Composition of Reserves

Physical asset revaluation surplus 46,298 37,571


Total equity 109,793 89,573

movEmENts iN rEsErvEs

Asset Revaluation Reserve - Land


Revaluation increment on non-current assets - 1,881

Revaluation (decrement) on non-current assets (901) -


Asset Revaluation Reserve - Buildings


Revaluation increment on non-current assets 9,628 -


NaturE aNd purposE of rEsErvEs

Asset Revaluation Reserve - Land The Asset Revaluation Reserve reflects any increases/decreases in the values of land.

Asset Revaluation Reserve - Buildings The Asset Revaluation Reserve reflects any increases/decreases in the values of buildings.

FInancIaLs | 63

note 16

cash flow information2012

$’0002011

$’000

(a) rEconcILIatIon oF oPEratIng rEsuLt aFtEr IncoME tax to nEt casH FLoWs FroM oPEratIng actIVItIEs

Net Result for the year 11,493 (4,474)

Non-cashflowsinoperatingresult

Depreciation of non-current assets 3,835 3,908

Net (gain) / loss on sale of non-current assets (67) 368

Allowance to recoverable amounts 473 40

(Revaluation)/devaluation of investment properties (50) (65)

Totalnon-cashflowsinoperatingresult 4,191 4,251

Movementsinoperatingassetsandliabilities

Decrease / (increase) in trade receivables (4,805) 1,660

Decrease / (increase) in inventories (52) 109

Decrease / (increase) in other assets 78 (48)

Increase / (decrease) in payables (3) 2,027

Increase / (decrease) in employee benefits (209) 699

Totalmovementinoperatingassetsandliabilities (4,991) 4,447

Netcashflowsprovidedby/(usedin)operatingactivities 10,693 4,224

(B) non-casH FInancIng and InVEstIng actIVItIEs

Therewerenoacquisitionsofplantandequipmentbymeansoffinanceleases.

(c) crEdIt standBy arrangEMEnts WItH BanKs

TheInstitutehasnocreditstandbyarrangementswithbanks.

(d) Loan FacILItIEs

TheInstitutehasnoloanfacilitieswithfinancialinstitutions.


note 17

commitments2012

$’0002011

$’000

coMMItMEnts For ExPEndIturE

(a)Capitalcommitments

Capital expenditure contracted for at the reporting date but not recognised as liabilities is as follows:

Property,PlantandEquipment

Payable:

Within one year 35 114

TotalProperty,PlantandEquipment 35 114

GST reclaimable on the above (3) (11)

NetCommitmentsProperty,PlantandEquipment 32 103

Total capital expenditure commitments 32 103

(b)Leasecommitments

Commitments in relation to leases contracted for at the reporting date but not recognised as liabilities, payable:


Later than one year but not later than five years 237 330

Total lease commitments 442 622


Net commitments Operating leases 402 566

Representing:

Non-cancellable operating leases 402 566

Total lease commitments 402 566

(I) oPEratIng LEasEs

PropertiesTheInstitute,aslessee,leaseslandatWangaratta,andbuildingfloorspaceatTatura,Terang,Warragul,LeongathaandCranbourne.TheInstituteleasesoutcertainlandandbuildingsthatareinexcesstocurrentrequirements.

EquipmentTheInstitutecontractsforphotocopiermaterialsusageonapercopybasis.

Communications AccessTheInstituteleasesoutitsowncommunicationstowerspacethatisinexcesstocurrentrequirements.

Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:


Later than one year but not later than five years 215 300

Totalminimumleasepaymentsinrelationtonon-cancellableoperatingleases 402 566

FInancIaLs | 65

note 18

Leased assets2012

$’0002011

$’000

non-cancELLaBLE oPEratIng LEasE rEcEIVaBLEs

Payments due:


Later than one year and not later than five years 480 654

Later than five years - 43

Total finance lease receivables 828 1,130


Net commitments operating leases assets 753 1,027

The Institute leases out certain land, buildings and equipment, which are excess to current requirements, at current market rates.

note 19

contingent assets and contingent Liabilities Contingent AssetsThere were no contingent assets (2011, Nil)

Contingent Liabilities A complaint has been filed against the Institute in the Fair Work Commission by an ex-employee of the Institute in relation to an application for unfair dismissal. The matters are currently proceeding in the Commission and no estimate can yet be made as to any settlement conditions that may apply.

Contingent liabilities reported in 2011 in relation to a discrimination claim by a student and a Workcover claim by a former employee have both been resolved.

note 20

Economic dependency2012

$’0002011

$’000

Victorian State Government Department of Education and Early Childhood Development 57,942 40,042

57,942 40,042

VictorianStateGovernmentDepartmentofEducationandEarlyChildhoodDevelopmentTheInstitutehasaneconomicdependencyonfundingforrecurrentandspecificfundingofeducationandcapitalprograms.


note 21

subsequent EventsNomattersorcircumstanceshavearisensincetheendofthereportingperiodwhichsignificantlyaffectedormaysignificantlyaffecttheoperationsoftheInstitute,theresultsofthoseoperations,orthestateofaffairsoftheInstituteinfuturefinancialyears.

note 22

remuneration of auditors2012

$’0002011

$’000

Remuneration of Victorian Auditor General’s Office for:

Audit of the financial report 22 21

TotalremunerationofVictoriaAuditorGeneral’sOffice 22 21

Remuneration of other auditors for:

Continuous audit and grant acquittals 57 50

Total remuneration of other auditors 57 50

Total remuneration of auditors 79 71

FInancIaLs | 67

note 23

superannuationEmployeesoftheInstituteareentitledtoreceivesuperannuationbenefitsandtheInstitutecontributestobothdefinedbenefitanddefinedcontributionplans.Thedefinedbenefitplan(s)providesbenefitsbasedonyearsofserviceandfinalaveragesalary.

TheInstitutedoesnotrecogniseanydefinedbenefitliabilityinrespectoftheplan(s)becausetheentityhasnolegalorconstructiveobligationtopayfuturebenefitsrelatingtoitsemployees;itsonlyobligationistopaysuperannuationcontributionsastheyfalldue.TheDepartmentofTreasuryandFinancerecognisesanddisclosestheState’sdefinedbenefitliabilitiesinitsfinancialstatements.

However,superannuationcontributionspaidorpayableforthereportingperiodareincludedaspartofemployeebenefitsintheComprehensiveOperatingStatementoftheInstitute.

ThenameanddetailsofthemajoremployeesuperannuationfundsandcontributionsmadebytheInstituteareasfollows:

2012 $’000

2011 $’000

PaId contrIButIon For tHE yEar

Defined benefit plans:

State Superannuation Fund - revised and new 198 221

State Employee Retirement Benefits Fund 11 12

Total defined benefit plans 209 233

Defined contribution plans:

VicSuper 1,685 1,736

Other 970 925

Total defined contribution plans 2,655 2,661

Total paid contribution for the year 2,864 2,894

contrIButIon outstandIng at yEar End

Defined contribution plans:

Other than VicSuper - 2

Total defined contribution plans - 2

Total - 2

Theaboveamountsweremeasuredasat31Decemberofeachyear,orinthecaseofemployercontributionstheyrelatetotheyearsended31 December.


note 24-1

Key Management Personnel disclosures (Part I)

rEsPonsIBLE PErsons rELatEd dIscLosurEs

InaccordancewiththedirectionsoftheMinisterforFinanceundertheFinancial Management Act 1994, the following disclosures are made fortheresponsibleMinisters,responsiblemembersoftheBoardandExecutiveOfficers.

i. MinisterTherelevantMinisterisTheHonPeterHallMLC,MinisterforHigherEducationandSkills.RemunerationoftheMinisterisdisclosedinthefinancialreportoftheDepartmentofPremierandCabinet.OtherrelevantinterestsaredeclaredintheRegisterofMembersinterests which is completed by each member of the Parliament.

ii. MembersoftheBoardofGoulburnOvensInstituteofTAFE ThefollowingpersonswereresponsiblepersonsandexecutiveofficersoftheInstituteduringtheyear:

Director and Chairperson - Mr Michael Tehan, co-opted member ChiefExecutiveOfficer-MrPaulCulpanDirector - Mr Adam Furphy, Ministerial appointmentDirector - Ms Lisbeth Long, Ministerial appointmentDirector - Mr Christopher McPherson, Ministerial appointmentDirector - Ms Ann Telford, Ministerial appointmentDirector - Mr Peter Quinn, Ministerial appointmentDirector-MrGeoffreyOliver,co-optedmemberDirector-MrMichaelLoscavo,staffrepresentativeDirector-MsRebeccaWoolstencroft,MinisterialappointmentAppointed 5th March 2012Director-MsSarahMcKenzie,studentrepresentativeAppointed 28th March 2012

ActingChiefExecutiveOfficer-MrGeoffreyCobbledickAppointed Acting Chief Executive Officer for the period from 3rd January to 6th January inclusive, 16th January to 20th January inclusive, 23rd November, 26th November, 28th November to 30th November inclusive and 24th December

ActingChiefExecutiveOfficer-MrRussellFrancisAppointed Acting Chief Executive Officer for the period from 9th January to 13th January inclusive and 23rd January to 27th January inclusive

iii.ExecutiveOfficers Thefollowingpersonsalsohadauthorityandresponsibilityforplanning,directingandcontrollingtheactivitiesofInstituteduringthefinancialyear:

MrAlbertAmadei,ExecutiveManagerMrPeterCarkeek,ExecutiveManagerMsLouisePearce,ExecutiveManagerMrAndrewPowell,ExecutiveManager,Appointed30thJanuary2012(previouslyActingExecutiveManager)MsNatashaMcCormick,ActingExecutiveManageruntil29thJanuary2012MsJeanetteBrown,ExecutiveManager,Appointed30thJanuary2012,Resigned28thSeptember2012

All of the above persons were also key management persons during the year ended 31 December 2012

FInancIaLs | 69

responsible persons

rEMunEratIon oF Board MEMBErs2012

$’0002011

$’000

Remuneration received, or due and receivable from the Institute in connection with the management of the Institute. Includes termination payments and bonuses paid at end of contracts. 582 782

IncoME rangE2012 No.

2011 No.

The number of Board members whose remuneration from the Institute was within the specified bands are as follows:

Nil - 1

$1 - $10,000 9 10

$50,001 - $60,000 1 -

$60,001 - $70,000 - 1

$80,001 - $90,000 1 -

$110,001 - $120,000 - 1

$170,001 - $180,000 - 2

$180,001 - $190,000 1 -

$220,001 - $230,000 - 1

$230,001 - $240,000 1 -

Total number of Responsible Persons 13 16

There were no retirement benefits paid by the Institute in connection with the retirement of Responsible Persons of the Institute.

Executive officers

ExEcutIVE oFFIcErs’ rEMunEratIon2012

$’0002011

$’000

The number of executive officers whose total remuneration exceeded $100,000 during the financial year are shown in their relevant income bands. The base remuneration is exclusive of bonus payments, long service leave payments, redundancy payments and retirement benefits.

Base remuneration of executive officers 723 643

Total remuneration of executive officers 724 703


IncoME rangE2012 No.

2011 No.

The number of executive officers whose remuneration from the Institute was within the specified bands are as follows:

$80,001 - $90,000 1 -

$100,001 - $110,000 1 1

$110,001 - $120,000 - 2

$120,001 - $130,000 - 3

$130,001 - $140,000 4 -

Totalexecutiveofficers 6 6

KEy ManagEMEnt PErsonnEL dIscLosurEs2012

$’0002011

$’000

Short-term employee benefits 1,278 1,376

Termination benefits 28 109

Total key management personnel compensation 1,306 1,485

note 24-2

Key Management Personnel disclosures (Part II)

Loans to key management personnel

Therewerenoloansinexistenceatreportingdatethathavebeenmade,guaranteedorsecuredbytheInstituteoranyrelatedpartytoResponsiblePersonsoftheInstituteorResponsiblePersons-relatedpartyofthoseResponsiblePersons.

Othertransactionswithkeymanagementpersonnel

Ì Mr.M.TehanisamemberoftheAdvisoryBoardofFCJCollegewhichengagedtheservicesoftheGoulburnOvensInstituteofTAFEfortheprovisionoftrainingservicesandfacilitieshireonnormalcommercialtermsandconditions.

Ì Mr.M.TehanisamemberoftheGoulburnValleyFootballLeaguewhichprovidedsponsorshiprightsandadvertisingservicestotheGoulburnOvensInstituteofTAFEonnormalcommercialtermsandconditions.

Ì Mr.M.TehanisamemberoftheAuditCommitteeoftheStrathbogieShireCouncilwhichengagedtheservicesoftheGoulburnOvensInstituteofTAFEfortheprovisionoftrainingservicesonnormalcommercialtermsandconditions.

Ì Mr.A.FurphyisManagingDirectorofJFurphy&SonsPtyLtd,whichprovidedoperationalservicestotheGoulburnOvensInstituteofTAFEonnormalcommercialtermsandconditions.JFurphy&SonsPtyLtdengagedtheservicesoftheGoulburnOvensInstituteofTAFEfortheprovisionoftrainingservicesonnormalcommercialtermsandconditions.

Ì Mr.C.McPhersonisExecutiveDirectorofMcPhersonMediaPtyLtdwhichprovidedinternetservicestotheGoulburnOvensInstituteofTAFEonnormalcommercialtermsandconditions.

Ì Mr.C.McPhersonisExecutiveDirectorofSheppartonNewspapersPtyLtdwhichprovidedmediaadvertisingservicestotheGoulburnOvensInstituteofTAFEonnormalcommercialtermsandconditions.

Ì Mr.C.McPhersonisExecutiveDirectorofBenallaNewspapersPtyLtdwhichprovidedmediaadvertisingservicestotheGoulburnOvensInstituteofTAFEonnormalcommercialtermsandconditions.

Ì Mr.C.McPhersonisExecutiveDirectorofSeymourTelegraphPtyLtdwhichprovidedmediaadvertisingservicestotheGoulburnOvensInstituteofTAFEonnormalcommercialtermsandconditions.

Ì Mr.C.McPhersonisExecutiveDirectorofNewsprintersPtyLtdwhichengagedtheservicesoftheGoulburnOvensInstituteofTAFEfortheprovisionoftrainingservicesonnormalcommercialtermsandconditions.

Ì Mr.C.McPhersonisExecutiveDirectorofMcPhersonNewspapersPtyLtdwhichengagedtheservicesoftheGoulburnOvensInstituteofTAFEfortheprovisionoftrainingservicesonnormalcommercialtermsandconditions.

Ì Mr.P.QuinnistheChiefExecutiveOfficerofGoulburnValleyWaterwhichprovidedoperationalservicestotheGoulburnOvensInstituteofTAFEonnormalcommercialtermsandconditions.

Ì Mr.G.OliveristheChairmanoftheBoardofAssociatedRetailersLtdwhichengagedtheservicesoftheGoulburnOvensInstituteofTAFEfortheprovisionoffacilitieshireonnormalcommercialtermsandconditions.

Ì Mr.G.CobbledickisaDirectorofGoulburnMurrayCreditUnionwhichengagedtheservicesoftheGoulburnOvensInstituteofTAFEfortheprovisionoftrainingservicesonnormalcommercialtermsandconditions.

FInancIaLs | 71

note 25

related parties

Key management personnel

DisclosuresrelatingtodirectorsandspecifiedexecutivesaresetoutinNote24.

transactions with related parties

Thefollowingtransactionsoccurredwithrelatedparties:

2012 $’000

2011 $’000

saLE oF goods and sErVIcEs

Training and facilities hire 33 17

Totalsaleofgoodsandservices 33 17

PurcHasE oF goods

Operational services 50 27

Sponsorship and media advertising 25 49

Internet services 28 51

Total purchase of goods 103 127

outstanding balances

Thefollowingbalancesareoutstandingatthereportingdateinrelationtotransactionswithrelatedparties:

currEnt rEcEIVaBLEs (saLE oF goods and sErVIcEs)

Related parties 2 -

Totalcurrentreceivables 2 -

currEnt PayaBLEs (PurcHasEs oF goods)

Related parties 2 5

Total current payables 2 5

Noprovisionfordoubtfuldebtshasbeenraisedinrelationtoanyoutstandingbalances,andnoexpensehasbeenrecognisedinrespectofbadordoubtfuldebtsduefromrelatedparties.


note 26

Institute details TheregisteredofficeoftheInstituteis:GoulburnOvensInstituteofTAFEFryers Street, Shepparton, Victoria, Australia 3630

The principal place of business is:GoulburnOvensInstituteofTAFE Fryers Street, Shepparton, Victoria, Australia 3630

note 27-1

Financial Instruments (Part I)

Financial risk management

i. Financialriskmanagementobjectives

TheInstitute’sactivitiesexposeittoavarietyoffinancialrisks:marketrisk(includingcurrencyrisk,cashflowinterestrateriskandpricerisk),creditriskandliquidityrisk.TheInstitute’soverallfinancialriskmanagementprogramfocusesontheunpredictabilityoffinancialmarketsandseekstominimisepotentialadverseeffectsonthefinancialperformanceoftheInstitutebyadheringtoappropriatebusinessprinciples.Compliancewithpoliciesandprocedureisreviewedbymanagementonacontinuousbasis.TheInstitutedoesnotenterintoortradefinancialinstruments,includingderivativefinancialinstruments,forspeculativepurposes.

TheInstituteusesdifferentmethodstomeasuredifferenttypesofrisktowhichitisexposed.Thesemethodsincludesensitivityanalysisinthecaseofinterestrateandotherpricerisks,ageinganalysisforcreditriskanddataanalysisinrespectofinvestmentportfoliostodetermine market risk.

TheInstitute’sFinanceSectionco-ordinatesaccesstofinancialmarkets,monitorsandmanagesthefinancialrisksrelatingtotheoperationsoftheInstitute.Theserisksincludemarketrisk(includingcurrencyrisk),creditriskandliquidityrisk.

Detailsofthesignificantaccountingpoliciesandmethodsadopted,includingthecriteriaforrecognition,thebasisofmeasurementandthebasisonwhichincomeandexpensesarerecognised,inrespectofeachclassoffinancialasset,financialliabilityandequityinstrumentisdisclosedinnote1ofthefinancialstatements.

ii. Financial risk exposures and management

TheInstitute’sfinancialinstrumentsconsistmainlyofdepositswithbanks,localmoneymarketinstruments,shortterminvestments,accounts receivables and payables and leases.

ThemainriskstheInstituteisexposedtothroughitsfinancialinstrumentsaremarketrisk,foreigncurrencyrisk,pricerisk,fundingrisk,interest rate risk, credit risk and liquidity risk.

FInancIaLs | 73

iii.Categorisationoffinancialinstruments

Carryingamountoffinancialinstrumentsbycategory:

Note Category2012

$’0002011

$’000

FInancIaL assEts

Cash and deposits 5 Cash 24,238 11,433

Receivables1 6 Loans & receivables 6,988 2,891

Receivable - Sale of Christensen Lane land1 7 Receivables - 4,010

Total 31,226 18,334

FInancIaL LIaBILItIEs

Payables1 13 Financial liabilities 3,938 3,958

Total 3,938 3,958

Netholdinggain/(loss)onfinancialinstrumentsbycategory:

Note Category2012

$’0002011

$’000

FInancIaL assEts

Receivables1 4 Loans & receivables (473) (40)

Total (473) (40)

Note1 : Receivables and payables disclosed here exclude statutory receivables and statutory payables.

Market risk

TheInstituteinitsdailyoperationsisexposedtoanumberofmarketrisks.Marketrisksrelatetotheriskthatmarketratesandpriceswillchangeandthatthiswillhaveanadverseaffectontheoperatingresultand/ornetworthoftheInstitute.e.g.anadversemovementininterest rates or foreign currency exchange rates.

TheBoardensuresthatallmarketriskexposureisconsistentwiththeInstitute’sbusinessstrategyandwithintherisktoleranceoftheInstitute.RegularriskreportsarepresentedtotheBoard.

TherehasbeennosignificantchangeintheInstitute’sexposure,oritsobjectives,policiesandprocessesformanagingmarketriskorthemethodsusedtomeasurethisriskfromthepreviousreportingperiod.

Foreign currency risk

TheInstitutehasminimalexposuretofluctuationsinforeigncurrenciesarisingfromthedeliveryofservicesincurrenciesotherthanAUD$.This risk is managed by natural hedging where possible.

TherehasbeennosignificantchangeintheInstitute’sexposure,oritsobjectives,policiesandprocessesformanagingforeigncurrencyriskorthemethodsusedtomeasurethisriskfromthepreviousreportingperiod.

Price risk

TheInstituteisexposedtopriceriskinrespectoffeeforserviceandcontractserviceswhicharesubjectopenmarketcompetition.

TherehasbeennosignificantchangeintheInstitute’sexposure,oritsobjectives,policiesandprocessesformanagingpriceriskorthemethodsusedtomeasurethisriskfromthepreviousreportingperiod.


Interest rate risk

Interestrateriskarisesfromthepotentialforachangeininterestratestochangetheexpectednetinterestearningsinthecurrentreportingperiodandinfutureyears.Similarly,interestrateriskalsoarisesfromthepotentialforachangeininterestratestocauseafluctuationinthefairvalueofthefinancialinstruments.

Theobjectiveistomanagetheraterisktoachievestableandsustainablenetinterestearningsinthelongterm.Thisismanagedpredominately through a mixture of short term and longer term investments.

Funding risk

Fundingriskistheriskofoverrelianceonafundingsourcetotheextentthatachangeinthatfundingsourcecouldimpactontheoperatingresult for the current year and future years.

TheInstitutemanagesfundingriskbycontinuingtodiversifyandincreasefundingfromCommercialactivities,bothdomesticallyandoffshore.

TherehasbeennosignificantchangeintheInstitute’sexposure,oritsobjectives,policiesandprocessesformanagingfundingriskorthemethodsusedtomeasurethisriskfromthepreviousreportingperiod.

concentrations of credit risk

Themaximumexposuretocreditrisk,excludingthevalueofanycollateralorothersecurity,atbalancedatetorecognisedfinancialassets,isthecarryingamount,netofanyprovisionsforimpairmentofthoseassets,asdisclosedinthebalancesheetandnotestothefinancialstatements.

There are no amounts of collateral held as security at 31 December 2012.

CreditriskismanagedonanInstitute-widebasisandreviewedregularlybytheInstituteBoard.Itarisesfromexposurestocustomersaswellasthroughdepositswithfinancialinstitutions.TheInstitutemonitorscreditriskbyactivelyassessingtheratingqualityandliquidityofcounterparties:

• onlybanksandfinancialinstitutionswithan‘A’ratingareutilised; • allpotentialcustomersareratedforcreditworthinesstakingintoaccounttheirsize,marketpositionandfinancialstanding;• customersthatdonotmeettheInstitute’sstrictcreditpoliciesmayonlypurchaseincashorusingrecognisedcreditcards.

TheInstitutedoesnothaveanymaterialcreditriskexposuretoanysinglereceivableorgroupofreceivablesunderfinancialinstrumentsentered into.

Thetradereceivablesbalanceat31December2012and31December2011donotincludeanycounterpartieswithexternalcreditratings.Customers are assessed for credit worthiness using the criteria detailed above.

TheInstituteminimisescreditriskinrelationtostudentloansreceivablebydirectdebitagreementsenteredintowithstudentswhoareunabletopayfeesatthetimeofenrolment.

TherehasbeennosignificantchangeintheInstitute’sexposure,oritsobjectives,policiesandprocessesformanagingfundingriskorthemethodsusedtomeasurethisriskfromthepreviousreportingperiod.

Liquidity risk

UltimateresponsibilityforliquidityriskmanagementrestswiththeInstitute’sgoverningbody,whichhasbuiltanappropriatepolicyfortheinvestmentofliquidassets.TheInstitutemanagesliquidityriskbymaintainingadequatereservesandbankingfacilitiesbycontinuouslymonitoringforecastandactualcashflowsandmatchingthematurityprofilesoffinancialassetsandliabilities.

TherehasbeennosignificantchangeintheInstitute’sexposure,oritsobjectives,policiesandprocessesformanagingliquidityriskorthemethodsusedtomeasurethisriskfromthepreviousreportingperiod.

FInancIaLs | 75

note 27-2

Financial Instruments (Part II)

summarised sensitivity analysis

ThefollowingtablesummarisesthesensitivityoftheInstitute’sfinancialassetsandfinancialliabilitiestointerestraterisk.

Carrying Amount

Interest Rate Risk

31 December 2012 -1% +1%

Result Equity Result Equity

$’000 $’000 $’000 $’000 $’000

ASSETS

Financial assets

Cash and cash equivalents 24,238 (242) (242) 242 242

Receivables1 6,988 - - - -

Receivable - Sale of Christensen Lane land1 - - - - -

Totalincrease/(decrease)infinancialassets 31,226 (242) (242) 242 242

LIABILITIES

Payables1 3,938 - - - -

Totalincrease/(decrease)infinancialliabilities 3,938 - - - -

Totalincrease/(decrease) 35,164 (242) (242) 242 242

Carrying Amount

Interest Rate Risk

31 December 2011 -1% +1%

Result Equity Result Equity

$’000 $’000 $’000 $’000 $’000

ASSETS

Financial assets

Cash and cash equivalents 11,433 (114) (114) 114 114

Receivables1 2,891 - - - -

Receivable - Sale of Christensen Lane land1 4,010 - - - -

Totalincrease/(decrease)infinancialassets 18,334 (114) (114) 114 114

LIABILITIES

Payables1 3,958 - - - -

Totalincrease/(decrease)infinancialliabilities 3,958 - - - -

Totalincrease/(decrease) 22,292 (114) (114) 114 114

Note1:Receivablesandpayablesdisclosedhereasfinancialinstrumentsexcludestatutoryreceivableandstatutorypayables.


note 27-3

Financial Instruments (Part III)

Financial instrument composition and interest rate exposure

Thetablesbelowreflecttheun-discountedcontractualsettlementtermsforfinancialinstrumentsofafixedperiodofmaturity,aswellasmanagement’sexpectationsofthesettlementperiodforallotherfinancialinstruments.Assuch,theamountsmaynotreconciletothebalance sheet.

ExposuretointerestrateriskisinsignificantandmayariseprimarilythroughtheInstitute’sinvestments.Minimisationofriskisachievedbymainlyundertakingfixedrateornoninterestbearingfinancialinstruments.TheInstitute’sexposuretointerestrateriskissetoutbelow.

2012

Weighted average

effectiverate

Total Carrying Amount per

Balance SheetFloating

interest rateFixed interest

rateNon-Interest

Bearing

% $’000 $’000 $’000 $’000

FINANCIAL ASSETS

Cash and deposits

Cash at bank and on hand 3.53% 5,997 5,992 - 5

Deposits at call 4.41% 18,241 18,241 - -

Contractualreceivables

Trade receivables - 2,252 - - 2,252

Revenue receivables - 5,313 - - 5,313

Total financial assets - 31,803 24,233 - 7,570

FINANCIAL LIABILITIES

Contractual liabilities

Trade and other payables - 3,938 - - 3,938

Total financial liabilities - 3,938 - - 3,938

2011

Weighted average

effectiverate

Total Carrying Amount per

Balance SheetFloating

interest rateFixed interest

rateNon-Interest

Bearing

% $’000 $’000 $’000 $’000

FINANCIAL ASSETS

Cash and deposits

Cash at bank and on hand 4.38% 7,854 7,848 - 6

Deposits at call 4.77% 3,579 3,579 - -


Trade receivables - 1,837 - - 1,837

Revenue receivables - 1,054 - - 1,054

Receivable - Sale of Christensen Lane land - 4,010 - - 4,010

Total financial assets - 18,334 11,427 - 6,907



Trade and other payables - 3,958 - - 3,958

Total financial liabilities - 3,958 - - 3,958

FInancIaLs | 77

ageing analysis of financial assets

Therearenofinancialassetsthathavehadtheirtermsrenegotiatedsoastopreventthemfrombeingpastdueorimpaired,andtheyarestatedatthecarryingamountsasindicated.ThefollowingtabledisclosesthecontractualmaturityanalysisfortheInstitute’sfinancialassetsandfinancialliabilities.

2012

Carryingamount

Not pastdue

and not impaired

Maturity datesImpairedfinancial

assetsLess than1 month

1-3months

3 months-1year 1-5years

FINANCIAL ASSETS


Trade receivables 2,252 1,066 396 161 35 17 577

Revenue receivables 5,313 5,313 - - - - -

Total contractual assets 7,565 6,379 396 161 35 17 577



Trade and other payables 3,938 3,774 152 3 9 - -

Total contractual liabilities 3,938 3,774 152 3 9 - -

2011

Carryingamount

Not pastdue

and not impaired

Maturity datesImpairedfinancial

assetsLess than1 month

1-3months

3 months-1year 1-5years

FINANCIAL ASSETS


Trade receivables 1,941 409 605 320 493 10 104

Revenue receivables 1,054 1,054 - - - - -

Receivable - Sale of Christensen Lane land 4,010 4,010 - - - - -

Total contractual assets 7,005 5,473 605 320 493 10 104



Trade and other payables 3,958 3,650 249 48 10 1 -

Total contractual liabilities 3,958 3,650 249 48 10 1 -


note 27-4

Financial Instruments (Part IV)

Fair value estimation

Thefairvalueoffinancialassetsandfinancialliabilitiesmustbeestimatedforrecognitionandmeasurementorfordisclosurepurposes.

Thecarryingvaluelessimpairmentprovisionoftradereceivablesandpayablesisareasonableapproximationoftheirfairvaluesduetotheshort-termnatureoftradereceivables.ThefairvalueoffinancialliabilitiesfordisclosurepurposesisestimatedbydiscountingthefuturecontractualcashflowsatthecurrentmarketinterestratethatisavailabletotheInstituteforsimilarfinancialinstruments.

Due to the short-term nature of the current receivables, their carrying value is assumed to approximate their fair value and based on credit history it is expected that the receivables that are neither past due nor impaired will be received when due.

Forotherassetsandotherliabilitiesthefairvalueapproximatestheircarryingvalue.FinancialassetswherethecarryingamountexceedsfairvalueshavenotbeenwrittendownastheInstituteintendstoholdtheseassetstomaturity.

Thecarryingamountsandaggregatenetfairvaluesoffinancialassetsandliabilitiesatbalancedateare:

2012 2011

CarryingAmount

$’000

Net FairValue$’000

CarryingAmount

$’000

Net FairValue$’000

FINANCIAL ASSETS

Cashandcashequivalents

Cash at bank and on hand 5,997 5,997 7,854 7,854

Deposits at call 18,241 18,241 3,579 3,579


Trade receivables 1,891 1,891 1,837 1,837

Revenue receivables 5,097 5,097 1,054 1,054

Receivable - Sale of Christensen Lane land - - 4,010 4,010

Total financial assets 31,226 31,226 18,334 18,334

Financial liabilities

Payables 3,938 3,938 3,958 3,958

Total financial liabilities 3,938 3,938 3,958 3,958

note 28

Ex-gratia Payments

2012 2011

$’000 $’000

Ex-gratiapayments 19 -

Totalex-gratiapayments 19 -

Theex-gratiapaymentwasinrelationtoemployeeretirement.ThisdisclosureismadeinaccordancewiththerequirementsofFinancialReportingDirection22oftheStateGovernmentofVictoria.

dIscLosurE IndEx | 79

disclosure index

(a) rEPort oF oPEratIons PAGE #

[1] SD 4.2(g)FRD 22

TheReportofOperationsistoincludequalitativeandquantitativeinformationonoperationsandbepreparedonabasisconsistentwiththefinancialstatementspreparedpursuant to the Financial Management Act 1994. This report is to provide users with informationabout:

Ì aninstituteanditsactivities; Ì operationalhighlightsforthereportingperiod; Ì futureinitiatives;and Ì otherrelevantinformationnotincludedinthefinancialstatements.

2-33

[2] SD 4.2(h)FRD 22

TheReportofOperationsmustbepreparedinaccordancewiththerequirementsofthefinancialreportingdirections.

31

[3] SD 4.5.5 Signatureofresponsibleperson–AttestationofcompliancewiththeAustralian/NewZealand Risk Management Standard.

28

[4] SD 4.2(j)FRD 22

Signatureofresponsibleperson–TheReportofOperationsmustbesignedanddatedbytheAccountableOfficerinthecaseofaGovernmentDepartment,orinthecaseofanyother Public Sector Body, a member of the responsible Body.

3-4

standard dIscLosurEs In tHE rEPort oF oPEratIonsgEnEraL InForMatIon

[5] FRD 22 Manner of Establishment, including the relevant Minister. 2

[6] FRD 22 Theobjectives,functions,powersandduties,linkedtoasummaryofitsactivities,programsandachievementsforthereportingperiod.

2-18

[7] FRD 22 Natureandrangeofserviceprovision,includingthecommunitiesserved. 2

[8] FRD 22 Organisationalchart(s)detailingmembersofthegoverningboardandtheCEO,andorganisationalchart(s)detailingoccupantsofseniorofficersandtheirresponsibilities.

19-24

goVErnancE

[9] TAFE Gov.Review

Outline of the structure of the board including:

Ì committeesoftheboard; Ì descriptionsoftheirfunctions;and Ì thenamesofthemembersofeachcommittee.

19-21

[10] TAFE Gov.Review

Outlineofthestructureofaninstituteboard,including:

Ì namesandqualificationsofmembersoftheboard,includingknowledge,experienceandskills; and

Ì asummaryofthenumberofmeetingsattendedbyeachboardmember.

19-21


Summary of training undertaken by board members throughout the year, including the number and type of programs.

21



Asummaryofperformanceandactivitiesofaboardincludingabriefdescriptionofavaluesof a board and whether there is a code of conduct used to guide board decisions.

21

[13] FRD 22B Statementonaninstitute’sworkforcedataforthecurrentandpreviousreportingperiod. 27

[14] FRD 22B Statementontheapplicationofemploymentandconductprinciples. 27

[15] FRD 22B Statementonoccupationalhealthandsafetyincludingappropriateperformanceindicatorsoutlininganinstitute’sperformanceagainstsuchindicatorsanddetailsofassessmentsandmeasurestakentoimprovetheoccupationalhealthandsafetyofemployees.

27

[16] FRD 22B Ageneralstatementonindustrialrelationswithinaninstituteanddetailsoftimelostthrough industrial accidents and disputes

27

dIscLosurE IndEx

[17] FRD 10 TheDisclosureIndexistocontainalistidentifyingtherelevantclausesofVictorianlegislationwithstatutorydisclosurerequirements. 79-84

[18] FRD 10 Ashortdescriptionoftherelevantrequirement. 79-84

[19] FRD 10 Thepageinanannualreportwherethedisclosureinsatisfactionoftherelevantrequirement is made. 79-84

dIscLosurEs

DISCLOSUREOFEX-GRATIAPAYMENTS

[20] FRD 11 Disclosureinaggregateofthenatureandamountofanyexgratiapaymentsincurredandwrittenoffduringthereportingperiod.Thisistobeincludedinthenotestothefinancialstatement.

78

DISCLOSURES OF RESPONSIBLE PERSONS

[21] FRD 21A(1)(a)

Thenameofeachpersonholdingapositionthatmeetsthedefinitionofresponsiblepersonofthereportingentityatanytimeduringthereportingperiod. 68

DISCLOSURES OF REMUNERATION OF ExECUTIVE OFFICERS

[22] FRD 21A(1)(b)

Wherethereismorethanoneresponsiblepersonduringanyreportingperiod,thetotalremunerationofallresponsiblepersonsreceivedorreceivableinconnectiontotheir employment.

69-70

[23] FRD 21A(1)(c)

Ananalysisofremunerationofresponsiblepersons:

Ì in bands of $10,000; and Ì listingthenumberofresponsiblepersonsandTotalAnnualisedEmployeeEquivalents(AEE)whoseactualremunerationfortheperiodfallswithineachband,andtotalamountpaidforexecutivesandAEEs.

69-70

[24] FRD 21A(1)(d)

Atabledisclosingtheaggregateamountofrelatedpartytransactionsatthereportingdate, including but not limited to the aggregate amount of repayments, shares andshareoptionsandothersourcesofremunerationthatdonotcomeunderthedefinitionofanyoftheabovementionedcategoriesreceivedbytheresponsiblepersoninadditiontobaseremuneration.

71


FInancIaL InForMatIon

[28] FRD 22 Summaryoffinancialresultswithcomparativeinformationforprecedingfouryears. 28

[29] FRD 22 Summaryofsignificantchangesinfinancialposition. 28

[30] FRD 22 Summaryofoperationalandbudgetaryobjectives,includingperformanceagainstobjectivesandsignificantachievements.

3-18, 25-28

[31] FRD 22 Eventssubsequenttobalancedatewhichmayhaveasignificanteffectonoperationsinsubsequentyears,includingasummaryofmajorchangesaffectingtheachievementofoperationalobjectives.

66

[32] FRD 22 For each consultancy valued in excess of $10,000, set out:

Ì aschedulelistingtheconsultantsengaged; Ì a summary of project involved; Ì total project fees approved (excluding GST); Ì expenditureforthereportingperiod(excludingGST);and Ì futurecommitmentsrelatingtoconsultant.

28

[33] FRD 22 Total number of consultancies individually valued at less than $10,000 (excl. of GST). 28

[34] FRD 22 Total expenditure (exclusive of GST) of these consultancy engagements. 26

[35] FRD 22 Financialinformationmustbeconsistentwiththatincludedinthefinancialstatements. Refer to financials

[36] FRD 22 TheReportofOperationsshouldbepresentedinaformatthatcomplementsthefinancialreport as a whole:

Ì containinganyadditionalinformationtheaccountableofficerorthegoverningboardconsiders appropriate; or

Ì anyinformationwhichhasbeenmandatedbyotherauthoritativepronouncements.

TheReportofOperationsmustcontaingeneralandfinancialinformation,includingotherrelevantfinancialinformation,outliningandexplaininganentity’soperationsandactivitiesforthereportingperiod.

2-33

[37] FRD 22 TheReportofOperationsmustincludeinitsreportofoperationsanauditedstatementofperformance including:

Ì the relevant performance targets and indicators as determined by the responsible Minister;

Ì theactualresultsachievedforthatfinancialyearagainstpre-determinedperformancetargets and indicators; and

Ì anexplanationofanysignificantvariancebetweentheactualresultsandperformancetargets indicators.

29-35

[25] FRD 21(2)(a)

Totalremunerationofallexecutiveofficersreceivedorreceivableinconnectiontotheir employment:

Ì includingtheremunerationofexecutiveofficersactinginthepositionofanaccountableofficeratanytimeduringthereportingperiod;and

Ì toensuredisclosuresaremeaningful,additionalinformationmayneedtobedisclosedaboutthenatureofsuchremuneration.

69-70

[26] FRD 21(2)(b)

Baseremunerationdisclosedseparatelyfromactualremuneration.Significantvariationsbetweentotalandbaseremunerationshouldbesupportedbyexplanatorycommentary.

69

[27] FRD 21(2)(c)

Accrualprinciplesthatapplyindeterminingremunerationlevels.Allamountsreceived or receivable by the individual are to be disclosed. 69


otHEr rELEVant InForMatIon

[38] FRD 22 SummaryofApplicationoftheFreedom of Information Act 1982 (including amendments of 3 August 2007). 25

[39] FRD 22 Statement on compliance with building and maintenance provisions of the Building Act 1993 (including amendments of 1 July 2007). 26

[40] FRD 22 SummaryoftheapplicationandoperationoftheWhistleblowersProtectionAct2001(including amendments of 1 July 2007) and disclosures required by this Act. 26

[41] FRD 22 StatementonimplementationandcompliancewithNationalCompetitionPolicy,includingstatement on compliance with policy statements, especially:

Ì “CompetitiveNeutrality:AStatementofVictorianGovernmentPolicy”; Ì “VictorianGovernmentTimetablefortheReviewofLegislativeRestrictionsonCompetition”;and

Ì any subsequent reforms.

26

[42] FRD 22 Summary of environmental performance. 32

[43] FRD 22 Statement(totheextentapplicablethattheinformationlistedinAppendix1)isavailableon request to the relevant Minister, members of Parliament or the public.ThisincludesadditionalinformationavailableonrequestsubjecttoprovisionoftheFreedom of Information Act 1982 (including amendments of 3 August 2007).

25

[44] FRD 22 Statementthatdeclarationsofpecuniaryinterestshavebeendulycompletedbyallrelevantofficers. 25

[45] FRD 22 Detailsofsharesheldbyseniorofficers(asnomineesorheldbeneficiallyinastatutoryauthority or subsidiary). 25

[46] FRD 22 Detailsofpublicationsproducedbytheentityaboutitselfandhowtheycanbeobtained). 25

[47] FRD 22 Detailsofmajorpromotional,publicrelationsandmarketingactivitiesundertakentodevelopcommunityawarenessoftheinstituteanditsservices. 5-18

[48] FRD 22 Detailsofchangesinprices,fees,charges,ratesandlevieschargedbytheinstitute. 25

[49] FRD 22 Detailsofanymajorexternalreviewscarriedoutontheinstitute. 26

[50] FRD 22 DetailsofmajorresearchanddevelopmentactivitiesundertakenbytheInstitute. 25

[51] FRD 22 Detailsofoverseasvisitsundertakenincludingasummaryoftheobjectivesandoutcomesof each visit. 16, 25

[52] FRD 22 Listofmajorcommitteessponsoredbytheinstitute,thepurposesofeachcommitteeandthe extent to which the purposes have been achieved. 25


oVErsEas oPEratIons oF VIctorIan taFE InstItutEs

[53] PAEC Financialandotherinformationoninitiativestakenorstrategiesrelatingtotheinstitute’sinternationaloperations. 16, 25

audItor gEnEraLRecommendation in relation to Overseas Operations of victorian TAFE institutes – 3.110 Auditor General, Special Reviews, 30 June 2002.

[54] 3.110 InformationinannualreportsofaTAFEinstituteshouldinclude:

Ì natureofstrategicandoperationalrisks; Ì strategies established to manage such risks; Ì performancemeasuresandtargetsformulatedforoffshoreoperations;and Ì the extent to which expected outcomes have been achieved.

10

FInancIaL rEPortIng dIrEctIon 27 – PrEsEntatIon oF rEPortIng and PErForMancE InForMatIonAudited Statements of key Performance Measures (kPis) must include an audited statement of performance for certain kPis.

[55] FRD 27A ReportingandperformanceshouldbepresentedusingKPIsandasignedPerformanceManagementCertificateshouldalsobecompleted.(Thefollowing11arethemandatoryKPIs)

1. Participationof15-24yearolds.2. Participationof25-64yearolds.3. ModuleLoadCompletionRate.4. Studentsatisfaction.5. Total Cost per Student Contact Hour (SCH).6. WorkingCapitalRatio.7. NetOperatingMargin.8. Fee for Service Revenue.9. RevenueperEFTStaff.10. Student Contact Hours (SCH).11. EnergyConsumption.

29-33


(B) FInancIaL statEMEntsPart 7 of the Financial Management Act 1994 (FMA)

[56] FMA 49(a)

MustcontainsuchinformationasrequiredbytheMinister. 41-50

[57] FMA 49(b)

Must be prepared in a manner and form approved by the Minister. 41-50

[58] FMA 49(c)

Mustpresentfairlythefinancialtransactionsofaninstituteduringthefinancialyeartowhich they relate. 41-50

[59] FMA 49(d)

Mustpresentfairlythefinancialpositionofaninstituteasattheendoftheyear. 41-50

[60] FMA 49(e)

MustbecertifiedbytheAccountableOfficerforaninstituteinthemannerapprovedbytheMinister. 41-50

The Financial Statements must be prepared in accordance with:

[61] SD 4.2 (a) AustralianAccountingStandards(AASandAASB)andothermandatoryprofessionalreportingrequirements(includingUrgentIssuesGroupConsensusViewsandStatementsofAccountingConcepts).

41-50

[62] SD 4.2 (a) FinancialReportDirections. 41-50

[63] SDA 4.2 (a) Business rules. 41-50

The Financial Statements are to comprise the following:

[64] SD 4.2 (b) Anoperatingstatement. 37

[65] SD 4.2 (b) A balance sheet. 38

[66] SD 4.2 (b) A statement of recognised income and expenses. 51-54

[67] SD 4.2 (b) Acashflowstatement. 40

[68] SD 4.2 (b) Notestothefinancialstatements. 41-78

The Financial Statements must, where applicable, be signed and dated by the Accountable Officer, CFAO and a member of the Responsible Body stating whether, in their opinion:

[69] SD 4.2 (c) TheFinancialStatementspresentfairlythefinancialtransactionsduringthereportingperiodandthefinancialpositionattheendoftheperiod. 34-35

[70] SD 4.2 (c) TheFinancialStatementsarepreparedinaccordancewiththisdirectionandapplicableFinancialReportingDirections. 34-35

[71] SD 4.2 (c) TheFinancialStatementscomplywithapplicableAustralianAccountingStandards(AASandAAB)andothermandatoryprofessionalreportingrequirements(includingUrgentIssuesGroupConsensusViewsandStatementsofAccountingConcepts).

34-35, 41

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